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Journalism of Courage
India’s exports jumped by a record 81.8 per cent year-on-year to USD 29.3 billion in July,2011,due to the sterling performance of sectors like engineering,petrochemical products and gems and jewellery.
However,this high growth rate is unlikely to be sustained in the coming months due to uncertainty in the US and European economies,Commerce Secretary Rahul Khullar said.
“Exports have done well… but my sense is that it (high export growth) is not going to sustain. It is simply not sustainable. We should see immediately by August-September growth rates slipping,” Khullar told reporters here.
During April-July,2011-12,overseas shipments of Indian products grew by 54 per cent to USD 108.3 billion.
Though most of the sectors posted robust expansion in export volumes,Khullar cautioned that the exporting community should not get carried away by these high numbers and should brace themselves as “summer is not over”.
Uncertain economic conditions in the US and Europe are likely to hit global demand. Together,these countries account for about 35 per cent of the country’s exports.
Imports,too,increased by 51.5 per cent to USD 40.4 billion,leaving a trade deficit of USD 11.1 billion.
During the first four months of the fiscal,imports grew by 40 per cent to USD 151 billion,led by inbound shipments of petroleum products worth USD 42 billion,an increase of 23 per cent year-on-year. The trade deficit during the period stood at USD 42.7 billion.
Commenting on the data,exporters’ body Fieo said: “The growth of 81.8 per cent in exports is unheard of in recent history.”
In July,India’s engineering,petroleum products and gems and jewellery exports were worth USD 8.7 billion,USD 4.6 billion and USD 3.5 billion,respectively.
