The Hindu : Business : Exports remain buoyant but trade gap widens

Online edition of India's National Newspaper
Wednesday, Sep 14, 2005

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Business

Exports remain buoyant but trade gap widens

Special Correspondent

High growth has been achieved despite floods in Mumbai

NEW DELHI: Export growth continues to be buoyant with 25 per cent increase recorded in August, but with imports rising even faster, the trade gap has widened considerably.

The latest data for the first five months of the current fiscal (April-August) show that the deficit had reached $17.4 billion against $9.7 billion over the same period last year.

Commenting on the export trends, the Union Commerce and Industry Minister, Kamal Nath, has noted that the high growth in August has been achieved despite floods in Mumbai as well as other constraints. He said it reflected the growing competitiveness of exports.

The export data released here on Tuesday show exports in August were pegged at $7.3 billion, 24.9 per cent higher than $5.8 billion in the same month last year.

This brings the overall growth for April-August to 23 per cent with total exports estimated at $35.7 billion against $29 billion in the corresponding period in 2004.

Imports, however, continue to surge at the rate of 37 per cent in the first five months of 2005-06 and were valued at $53.1 billion against $38.8 billion last year.

Oil imports have risen by 36.8 per cent and were valued at $16.4 billion against $12 billion. Non-oil imports during the period under review were estimated at $36.7 billion, 37.1 per cent higher than last year when imports were pegged at $26.8 billion.

Imports during August were estimated at $10.4 billion, an increase of 32.4 per cent over last year's $7.9 billion.

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