Business   

Rising rupee pulls down export growth

NEW DELHI: The pressure of rupee appreciation has started to show on exports. Though exports went up by 26.82 per cent to $12.42 billion in November 2007, from $9.79 billion in the corresponding month last year, shipments actually declined from 35 per cent ($13.3 billion) registered in October 2007.

Exports between April and November 2007 went up by 22.08 per cent to $98.38 billion from $80.59 billion in the correspondent period of 2006. Imports also continue to grow at 29.26 per cent ($19.83 billion) in November 2007 compared to the same month in 2006 ($15.34 billion), while 26.9 per cent growth was recorded for the eight-month period (April-November 2007) at $151.19 billion against $119.07 billion in the same period last fiscal.

Oil imports at $58.23 billion in November were 16.72 per cent higher than the $49.89-billion oil imports in November 2006, while non-oil imports during the month grew by 35.3 per cent to $14 billion from $10.35 billion. The trade deficit for the eight months stood at $52.8 billion as compared to $38.48 billion in the same period of 2006.

According to Federation of Indian Export Organisations President Ganesh Gupta, though the Government may say there is an overall growth in exports, it actually has started declining. “A comparison of October and November 2007 figures clearly reveals it,” he told The Hindu. A sector-wise analysis is also required to find the real truth as reports clearly indicate that employment- oriented segments like textile, leather and handicrafts had registered a decline, while their advance orders might get affected due to appreciating rupee, Mr. Gupta said, and urged the Government to immediately announce more sops to save export-oriented units from closure.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

FM non-committal on moderation in tax rates
Rising rupee pulls down export growth
New year starts on cautious note
I-T code will be released with discussion paper
Insiders may have to return ‘short swing profits’: SEBI draft
GAIL, RCF sign MoU
IT: domestic growth will balance global slowdown
Three States apply for petrochemical region
Wockhardt launches cetirizine in U.S.
Rupee ends steady
Exchange Rates
Bullion Rates
Import duty on wheat flour scrapped
Commission term extended
TRAI on broadband speed

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu