The Hindu : Business : Exports maintain momentum in H1

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Friday, Nov 02, 2007
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Business

Exports maintain momentum in H1

Trade gap widens to $37 b in first half

NEW DELHI: Withstanding the rupee pressure, exports showed a healthy growth of 19.26 per cent while imports posted a moderate 2.31 per cent expansion in September.

Reflecting a squeeze in the margins for exporters, the export growth in rupee terms was only 4.31 per cent while imports, measured in domestic currency, declined by 10.51 per cent in September this year over the same month in 2006-07.

Exports improved to $12.79 billion in September from $10.73 billion in the corresponding month of last year. Imports rose to $17.21 billion from $16.82 billion, according of official data released here on Thursday.

The trade deficit narrowed to $4.42 billion in September from $6.09 billion in the year-ago period on the back of sharp drop in imports.

While the export growth has more than halved since last year, Union Commerce and Industry Minister Kamal Nath maintained his optimism about touching the $160 billion target for 2007-08. “I am still confident that exports will pick up in the next few months,” he said. The slowdown in imports, he said, could be due to ‘seasonal factors’ and did not reflect slackening of demand.

The Federation of Indian Export Organisations (FIEO) expressed satisfaction over the export performance despite rupee gaining over 10 per cent since March this year. Exports for the April-September period this year increased to $72.28 billion from $60.98 billion in the same months last year, showing a growth of 18.52 per cent. However, in rupee terms the growth for the first six months was only 5.34 per cent.

Imports for the first half of the year were $109.20 billion against $87.01 billion, showing a growth of 25.5 per cent. Measured in rupee terms, the growth was 11.66 per cent.

The total trade gap for the first half of the year is placed at $36.92 billion against $26.02 billion.

Non-oil imports during September 2007 were $11.71 billion, 0.15 per cent lower than $11.73 billion in the same month last year.

Oil imports

For the April-September period, non-oil imports were valued at $77.80 billion, up 34.13 per cent over $58 billion in the corresponding months of 2006-07.

Oil imports went up by 7.98 per cent in September at $5.49 billion against $5.09 billion. For the six-month period, oil imports were $31.39 billion, showing a growth of 8.26 per cent. — PTI

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