Exports up 11.1 in Sept; trade gap at 30-month low
Amid a policy-enabled sharp fall in inward shipments of gold and silver,Indias merchandise trade deficit crashed to a 30-month low of 6.76 billion in September.
Amid a policy-enabled sharp fall in inward shipments of gold and silver,Indias merchandise trade deficit crashed to a 30-month low of 6.76 billion in September. The trade gap is the lowest since March 2011,when it stood at 3.8 billion.
The sharp fall in trade deficit could help curb the burgeoning current account deficit in Q2,and subsequently stabilise the rupee,which depreciated to as much as over 68 against the dollar this year.
While exports jumped 11.1 per cent YoY to 27.68 billion in September,partly aided by a weak rupee,imports dipped 18.1 per cent to 34.4 billion. I am confident that import-containment measures put in place for non-essential imports are playing out extremely well and we need to continue this so that our rupee becomes stronger, SR Rao,commerce secretary,said.
US shutdown not to hit Indias exports: Rao
New Delhi: Indias exports are unlikely to be hit on account of the US shutdown which has been going on for more than a week now,commerce secretary SR Rao today said.
I do not think so,essentially because of the thumb rule that industry in US is not led by government but by the private sector, Rao said when asked whether the US shutdown would reverse export growth of India. He said US businessmen are quite aggressive and will not allow the shutdown to continue. …the US businessmen are extremely aggressive…so will they keep quiet if their business has shut? PTI
Gold and silver imports declined sharply by 82 per cent during September at 0.8 billion as against 4.6 billion during the year-ago period,thanks to the hike in import duty on the metals to 10 per cent in August,the third revision this year,and the Reserve Bank norm that at least a fifth of gold bought from abroad must be used for re-exports. During the first half of this fiscal,gold and silver imports rose 8.7 per cent to 23.1 billion. Import of petroleum and oil products declined 5.9 per cent during the month at 13.2 billion.
During the first half of the fiscal,exports grew by 5.14 per cent to 152.11 billion while imports declined by 1.8 per cent to 232.23 billion. The trade deficit for the April-September period stood at 80.12 billion.
BRICS Slowdown cyclical factors at play
Cyclical or structural?
An IMF analysis indicates that cyclical factors have played a large,perhaps underappreciated role in the slowdown. Potential growth has fallen,but the IMF staff expects the associated drop in growth rates to prove durable in only two economies: China and Russia.
Why have the BRICS simultaneously slowed?
The slowdowns are hardly unprecedented,as shown in the charts. The BRICS economies were always expected to decelerate as they settled back to more moderate growth rates from the bounce-back levels that prevailed after the global financial crisis,but growth rates have fallen much further than expected.
Real GDP Growth
How bad are the growth projections?
For India,projected average growth in 2013 has been lowered to 3.75 which is expected to pick up to 5.1 next year.
Brazil
For Brazil,the latest growth slowdown is actually mild compared with earlier two-year slowdowns.
China
For Brazil,the latest growth slowdown is actually mild compared with earlier two-year slowdowns.
India
A year of growth slowdown occurs when the difference in growth rates between year t and year t -2 is negative. Growth is shown on a calendar year basis.
South Africa
For South Africa,the slowdown is smaller than two-thirds of the earlier slowdowns.
Share
