New Delhi: April 2, 2012
Impacted by economic and financial problems in the US and euro-zone countries, India’s export growth slipped to three-month low of 4.2 per cent to USD 24.6 billion in February.
In sharp contrast, imports grew at a faster rate of 20.6 per cent year-on-year to USD 39.7 billion in February, leaving a trade deficit of USD 15.1 billion.
From a peak of 82 per cent in July, export growth slipped to 44.25 per cent in August, 36.36 per cent in September, 10.8 per cent in October and 3.8 per cent in November 2011.
However, exports grew 6.7 per cent in December, and over 10 per cent in January. During the April-February period in 2011-12, exports aggregated to USD 267.4 billion, a year-on-year growth of 21.4 per cent, thanks to the surge witnessed in the early months of the fiscal. Industry experts said the country’s shipments may touch USD 290 billion by the end of the fiscal.
“We are inching towards our target of USD 300 billion but may fell short of it and reach USD 290 billion with expected average growth of 20 per cent,” Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said. He said exporters’ initiatives to tap growing markets like Latin America coupled with BRICS’ decision of trading in local currency and emerging opportunities in Iran would help India’s exports to sail through the rough weather.
Ahmed said the impact of growing protectionism, subdued growth in the US and the euro-zone debt crisis on Indian exports is likely to remain in 2012-13 as well. During the 11-month period, imports increased by 29.4 per cent to USD 434.1 billion. Trade gap during the period stood at USD 166.7 billion.