New Delhi: The rate of import has dipped to a 10-month low of 15%, amounting to $22 billion for the month of October. During the same month, exports dipped 6.6%, also the least in the past 10 months, and stood at $13.19 billion. The trade data came a day after the Centre announced that the that Gross Domestic Product expanded by a higher-than-expected rate of 7.9% in the three months ending September, riding on a robust performance by the industrial and services sectors.
India’s exports and imports have been in the red, as demand in both overseas and domestic markets nose-dived due to the global economic crisis. However, exports have been improving since April, even though it continues to be in the negative territory. “In about seven months we have recovered considerably,” commerce minister Anand Sharma had said last week. However, the dip in imports did not show any signs of improvement —contracting in the range of 18 to 39% in the April-September period. The commerce ministry is reviewing the performance of the export sector and will soon be releasing an additional set of incentives for labour-intensive sectors.
Trade deficit—the difference between exports and imports—during October stood at $8.8 billion, nearly 26% below the figure of $11.73 billion seen in the year-ago month. In the period between April and October, India’s exports stood at $91 billion, a dip of 26%, while imports were valued at $ 148.36 billion, a contraction of 29.6%.
According to officials in the commerce ministry, the overall reduced rate of contraction in exports seen in the past seven months indicate that the stimulus package and foreign trade policy measures arrested the rate of decline. A labour ministry survey showed that in the second quarter, export-oriented factories added over two lakh jobs, a first since the economic crisis hit India about a year back.
Initial estimates available with the commerce ministry suggest that exports of petroleum products, plastics, marine products, spices, pharmaceuticals and iron ore grew during the month. In addition, the export of commodities like cotton yarn, basic chemicals, electronic goods leather products and gems and jewellery showed a lower rate of contraction in October, compared to the previous months, indicating increased overseas orders.
Data also showed that non-oil imports, comprising machinery and raw material amongst others, declined 17.2%, and stood at $ 15.38 billion. Oil imports during the month stood at $ 7.28 billion, 9.3% lower than the year-ago month.
Source : Financial Express