The Hindu : Exports rebound in November

Online edition of India's National Newspaper
Friday, Jan 02, 2004

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Exports rebound in November

By Our Special Correspondent

NEW DELHI JAN. 1. The new year brought more good news on the economic front as exports resumed double digit growth in November. In the wake of the 8.4 per cent gross domestic product (GDP) growth for the second quarter announced yesterday, the rebound in export growth is expected to increase the `feel-good' factor in the industrial sector.

The spurt in November exports is estimated at 13.74 per cent, a substantial rise after the 5 per cent growth recorded in October. This brings the overall export growth for the first eight months of the current fiscal (April-November) to 8.1 per cent.

According to the trade data released here today by the Union Commerce Ministry, the trade deficit continues to widen in the face of faster import growth during the year. It is now estimated at $11.2 billion for the April-November period as against $5.5 billion in the same period in the previous year. The doubling of the trade gap, however, is not a matter of much concern for the Government owing to the burgeoning foreign exchange reserves of $100 billion.

The widening trade deficit is due to imports rising nearly 22 per cent during April-November with November alone recording a rise of 26.45 per cent. Non-oil imports account for the bulk of the increase as these have risen by 25.89 per cent during April-November while oil imports have shown a growth of 12.4 per cent.

Though exports have shown a sharp increase in November, the overall rise in the current fiscal remains below the target of 12 per cent. In case this pace continues, however, it may not be difficult to achieve the target but for the continued appreciation of the rupee against the dollar which is worrying exporters a great deal.

The data show exports in November were $4.49 billion against $3.95 billion in the same month in the previous year. Exports during April-November 2003-04 were valued at $36.5 billion, 8.1 per cent higher than the level of $33.54 billion.

Imports during April-November 2003-04 were valued at $47.71 billion, a rise of 21.97 per cent over the level of imports valued at $39.124 billion in the comparable period in 2002-03. Imports during November this year were valued at $6.41 billion, an increase of 26.45 per cent against $5.07 billion.

Oil imports during April-November 2003-04 were valued at $12.79 billion, 12.41 per cent higher than imports valued at $11.38 billion in the corresponding period in the previous year. Non-oil imports during this period were estimated at $34.92 billion, which is 25.89 per cent higher than the level of $27.74 billion in April-November 2002-03.

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