NEW DELHI: Exports have dipped by 11.38 per cent in November this year, but the overall growth rate continues at a buoyant 16 per cent for the first eight months of the current fiscal. The slippage in November is being attributed to sectoral factors affecting engineering goods, textiles and clothing and gems and jewellery sectors, according to the Union Commerce Ministry.

New levies hit exports

The value realisation of primary steel products was adversely affected by the fall in world prices while engineering goods exports were hit by levies such as service tax and fringe benefit tax. In the textiles and clothing industry, manmade fibre exports were hurt by high prices of raw materials. Similarly, tightening of "roundtripping" in the gems and jewellery sector was reflected in the data, said an official release.

The latest foreign trade data released here on Thursday show that exports have continued on a double-digit growth path during April-November 2005-06 with the growth rate reaching 16 per cent. Exports during November, however, fell by 11.38 per cent to $6.1 billion from $6.9 billion in the same month last year. Total exports during April-November are estimated at $57 billion against $49.1 billion over the same period in the previous fiscal.

The trade deficit had shot up over this period to $27.6 billion from $16.3 billion over the same period in 2004-05. This was largely due to the higher growth in imports, which were pegged at 29.32 per cent.

Total imports have reached $84.7 billion as compared to $65.4 billion during April-November 2004-05. Oil imports have risen by as much as 43.46 per cent while non-oil imports have recorded a lower growth of 23.39 per cent.

Imports during November 2005 are valued at $9.9 billion representing an increase of 8.68 per cent over $9.1 billion recorded in the same month last year.

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