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July exports up by 11.6%,highest in almost 2 years

The outbound shipments stood at $25.83 billion in July as compared to $23.14 billion during the same period a year ago

After almost two years,exports jumped 11.64 per cent in July this year while imports declined 6.20 per cent,bringing some relief in an otherwise grim economic scenario. The growth in exports comes after a declining for two consecutive last months.

The outbound shipments stood at $25.83 billion in July as compared to $23.14 billion during the same period a year ago,on greater demand in the African and Latin American markets,an improvement in the US economy,further supported by base effect and rupee depreciation. The export of pharmaceuticals,textiles,chemicals and heavy machinery saw a robust growth in July. Exports had grown 23.71 per cent in October 2011.

However,trade deficit remained unchanged at $12.26 billion,same as recorded last month in June,ensuring that the pressure on the current account deficit and rupee remained. A 34 per cent decline in import of gold and silver to $2.9 billion during the month as against $4.4 billion in the same

period last year,helped in controlling trade deficit.

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“We do hope that these measures would help us in improving our export target performance in the coming months…continuing interest in Africa,Latin America,Asean and Far East regions should be helping us,” commerce secretary SR Rao told reporters while releasing the trade data for the month of July. He said the measures announced to boost exports including a hike in the rate of interest subsidy,would help exports,adding that the government is targeting a 10 per cent growth in exports this year. Total exports of the country stood at $300.6 billion last fiscal.

Surath Sengupta,head trade and receivables finance,HSBC India,said that though exports show re early signs of recovery in global demand,“these need to be seen against the long term backdrop of y-o-y increase in imports. While some of the short term measures are paying off,there are structural changes required to tackle the trade deficit on a more long term basis.”

Further,for the first four months,exports grew by 1.72 per cent to $98.2 billion while imports increased by 2.82 per cent to $160.7 billion during the period,leaving a trade deficit of $62.4 billion.

Though hopeful,export organisations were cautious in calling the exports growth a turnaround. A Sakthivel,chairman,AEPC,said though the US market is gaining strength,the EU is still under economic stress. “Our exports diversification in the non-traditional markets and sustained government help has also helped to boost exports,” he said.

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Oil imports in July declined 8 per cent to $12.7 billion and during April-July,it increased 2.65 per cent to $54.5 billion while non-oil imports fell 5.26 per cent to $25.39 billion.

Trade flows

The outbound shipments stood at $25.83 billion in July as compared to $23.14 billion during the same period a year ago

The export of pharmaceuticals,textiles,chemicals and heavy machinery saw a robust growth in July

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trade deficit,however,remained unchanged at $12.26 billion,same as recorded last month in June

gold and silver import declined 34% to $2.9 billion during the month,helping in controlling trade deficit

First published on: 13-08-2013 at 02:26:56 am
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