Up by 6.7,Dec exports post subdued growth

If we achieve 80 bn exports in next quarter,we will be close to 300 bn FY12 target: Rahul Khullar

Amid the economic turbulence in the euro zone and the US,Indian exports posted a year-on-year growth of a mere 6.7 per cent in December as against a robust growth of 36.4 per cent during the same period in the last fiscal.

Exports had registered an abysmal 3.8 per cent in November 2011-12. The countrys one of the biggest trading partner the European Union EU continues to grapple with sovereign debt crisis with rating agency Standard amp; Poors downgrading the credit ratings of 9 euro zone nations. According to the provisional figures released by commerce secretary Rahul Khullar today,exports for December stood at 25 billion. During April-December,outward shipment recorded 25.8 per cent growth and stood at 217.6 billion.

As contrast to exports,imports grew by 19.8 per cent during the month at 37.8 billion while it grew by 30.4 per cent at 350.9 billion during the nine months period in the current fiscal. The wide difference in the inbound and outbound shipment ballooned the trade deficit to -133.3 billion for April-December period.

If you get 80 billion exports in the remaining quarter January-March,2012,you are looking at close to 300 billion. And imports may touch about 460 billion, Khullar said.

He added that at the current reckoning,and if the exports picked up in the fourth quarter,the balance of trade is likely to settle around 155-160 billion.

In the fourth quarter,however,the growth in imports may be less given the fact that the corporate India deferred investments in the third quarter.

All the same,month-on-month growth in exports has steadily decelerated beginning July. Imports too decelerated month-on-month except in the month of October and December.

Story continues below this ad

While 25.8 per cent growth in first nine months looks impressive 8230; points to challenging times ahead. However 8230; we will be able to achieve over 280 billion in 2011-12, M Rafeeque Ahmed,president,FIEO,said. Ahead of the monetary policy review on January 24,Rafeeque also made a case for bringing down the cost of credit to provide boost to both manufacturing and exports.