A sharp rise in export of petroleum products, engineering goods, chemicals
and marine products has helped the country to reach a double digit growth in
overall exports during August this year. The growth registered was 10.29 per
cent for the first time in recent months, barring March when it hit a high of
27 per cent.
While the country's exports last month had touched 23.81 billion US
dollars, the import growth also accelerated to 35.45 billion US dollars thereby
pushing up the trade deficit to 11.64 billion US Dollars. The trade deficit in
July this year was 7.7 billion US dollars.
The first set of trade data released after the new commerce minister Suresh
Prabhu assumed office revealed the export growth reaching a new height after
decelerating for the past four months since March.
The double digit export growth in August has spread across a large number
of sectors including tea, coffee, rice, iron ore, ceramic products and carpets
has made exporters positive about the future.
A pick up in exports augurs well for the exporters who seem to benefit from
the recovery in major global markets including United States and the Continent,
a spokesman of the engineering exports promotion council said. The exports
could be further enhanced if issues faced by the exporters arising out of the
implementation of Goods and Service tax are addressed.
The exporters have been facing a major liquidity crisis since the ministry
is not reimbursing the drawback claim refunds. The council sources said only
four sectors have contracted among the 30 most important export sectors of the
Engineering exports have been increasing at rapid pace at about 20 per cent
in August as against 15 per per cent the previous month. The growth is
attributed to pick up in base metals.
Apparel exports grew marginally by 0.5 per cent during august as against a
decline during the previous three months. Pharmaceutical exports went up 4.21
per cent in August as against a contraction of 5.35 per cent in July.
Gems and jewellery exports declined by nearly thirty per cent. The export
in this sector mostly from Gujarat has witnessed contraction during previous
three months at around 20 per cent each month.
Gold imports however went up by 95 per cent in August and 68 per cent in
July. The gold import mostly from Korea has gone up to 15 billion US Dollars
during the first five months of the current financial year as against six
billion US dollars during the same period last year.