NEW DELHI: Recovery in global markets pushed the country’s exports to a two year high of 13.47 per cent to USD 27.2 billion in October even as trade deficit worsened on account of rise in gold imports.
Last time in September 2011, the country’s merchandise shipments increased by 36 per cent.
Gold and silver imports increased to USD 1.3 billion in the month under review from USD 0.8 billion in September, 2013.
Trade deficit jumped to USD 10.5 billion as against USD 6.76 billion in September this year. The trade deficit in October 2012 was at USD 20.2 billion.
Oil imports grew by 1.7 per cent year-on-year to USD 15.2 billion.
Overall imports declined by 14.5 per cent to USD 37.8 billion in October as compared to the same period last year.
Commerce Secretary S R Rao said improvement in western markets have helped in pushing the exports.
“Exports have shown a significant increase and imports fell significantly…All the regions are doing well. We see no concerns. Only South Asia and Latin America are marginally low,” Rao told reporters here.
In April-October, exports grew by 6.32 per cent to USD 179.38 billion, while imports during the period contracted by 3.8 per cent to USD 270.06 billion.
Rao expressed confidence that the country would achieve the USD 325 billion target for the current fiscal.
“All the major sectors (engineering, textiles and gems and jewellery) having significant contribution have shown a positive growth trend,” he added. Engineering exports grew by 36 per cent to USD 5.6 billion in October.
Commenting on the figures, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said exports were expected to continue growing in double digits in the coming months.
Rao said that gold and silver imports in October grew due to the clearing of air on a RBI norm for gold imports.
The RBI’s 80:20 scheme for gold imports had left many confused, leading to imports being held up at customs.
In April-October, exports grew by 6.32 per cent to USD 179.38 billion, while imports during the period contracted by 3.8 per cent to USD 270.06 billion.
Trade deficit in the first seven months of the fiscal stood at USD 90.68 billion as against USD 112.3 billion in April-October 2012.
Gold and Silver imports in April-October 2013 declined by 12.86 per cent to USD 24 billion compared to USD 28 billion in the same period last year.
Oil imports during April-October 2013-14 grew by 3.3 per cent to USD 98.1 billion. However, non-oil imports in October dipped by 22.80 per cent to USD 22.6 billion and during the seven months period too, it declined by 7.43 per cent to 171.96 billion.
On the expectation of Federation of Indian Export Organizations (FIEO) that exports would touch USD 350 billion, Rao said: “we hope and pray for that. Things are looking encouraging”.
Petroleum product exports jumped to USD 35 billion in April-October 2013 period from USD 33 billion in the same period last year. Engineering shipments grew by 40.5 per cent to USD 33.66 billion.
Further, FIEO said that trade deficit for the current fiscal may be around USD 140 billion much less than 192 billion recorded in 2012-13.
“This will ease pressure on Current Account Deficit.
Exports will post even better results in forthcoming months,” it said.–PTI
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