ID :
200765
Thu, 08/11/2011 - 21:26
Auther :
Shortlink :
https://www.oananews.org//node/200765
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Exports climb 81.8% in July, high growth unlikely to sustain
New Delhi, Aug 11 (PTI) India's exports jumped by a
record 81.8 per cent year-on-year to USD 29.3 billion in July,
2011, due to the sterling performance of sectors like
engineering, petrochemical products and gems and jewellery.
However, this high growth rate is unlikely to be
sustained in the coming months due to uncertainty in the US
and European economies, Commerce Secretary Rahul Khullar said.
"Exports have done well... but my sense is that it (high
export growth) is not going to sustain. It is simply not
sustainable. We should see immediately by August-September
growth rates slipping," Khullar told reporters here.
During April-July, 2011-12, overseas shipments of Indian
products grew by 54 per cent to USD 108.3 billion.
Though most of the sectors posted robust expansion in
export volumes, Khullar cautioned that the exporting community
should not get carried away by these high numbers and should
brace themselves as "summer is not over".
Uncertain economic conditions in the US and Europe are
likely to hit global demand. Together, these countries account
for about 35 per cent of the country's exports.
Imports, too, increased by 51.5 per cent to USD 40.4
billion, leaving a trade deficit of USD 11.1 billion.
During the first four months of the fiscal, imports grew
by 40 per cent to USD 151 billion, led by inbound shipments of
petroleum products worth USD 42 billion, an increase of 23 per
cent year-on-year. The trade deficit during the period stood
at USD 42.7 billion.
Commenting on the data, exporters' body Fieo said: "The
growth of 81.8 per cent in exports is unheard of in recent
history."
In July, India's engineering, petroleum products and gems
and jewellery exports were worth USD 8.7 billion, USD 4.6
billion and USD 3.5 billion, respectively.
In July, imports of petroleum and oil lubricants stood
USD 11.45 billion. Imports of pearls and semi-precious stones,
gold and silver stood at USD 3.7 billion, respectively.
Fieo, too, said the high growth trend of exports is
unlikely during the third and fourth quarter.
"The problem at the domestic front with hike in interest
rates for exports and un-certainty over continuance of DEPB
Scheme have further accentuated the problem," Fieo President
Ramu Deora said.
Khullar also said that hike in interest rates are mainly
hit small and medium enterprises. "People of SME sector have
been complaining to me and that I am trying to do something on
that."
During the April-July period, sectors which registered
healthy growth in exports include engineering, petroleum
products (60 per cent), readymade garments (40 per cent),
electronics (84 per cent), chemicals (63 per cent) and
plastics (51 per cent).
Export sectors which are not doing well during the period
include tobacco, iron ore and fruits and vegetables.
During the period, pearls and semi-precious stones
increased to USD 11.16 billion, machinery (45 per cent),
electronics (75 per cent), chemicals (19 per cent).
On trade deficit, Khullar said that on an average monthly
trade gap stood at roughly about USD 10.75 billion. Going by
this, India's trade deficit may touch USD 130 billion in
2011-12.
"If you do not fix your balance of trade problem, you are
going to have a difficult issue," he said.
Talking about demand in the new markets, he said that
exports are registering good growth in new markets like in
Latin America and Africa.
"In Africa, we are doing extremely well. Numbers are
almost more than double," he said.
Further Khullar said that the country is "better
prepared" than 2008 to face any further slowdown. "We are far
more aware that where the shoe is going to start pinching. We
know what the warning signs are and where to look".
He, however, added: "We recognise that, it is going to
hurt us."
When asked, whether the government's strategy to double
exports to USD 500 billion by 2014 is on the right track in
the wake of global economic situations, the secretary said:
"The strategy we embarked on two years ago was reasonably
sensible and pragmatic. It seems to have worked. If it is
working why you want to change it".
On Duty Entitlement Pass Book (DEPB) scheme, he said, "As
a Department of Commerce official I have always argued that
DEPB should continue, but I recognise that there is a fiscal
problem."
Exporters are strongly demanding to extend the scheme for
some more years. The government has extended the tax incentive
scheme for exporters till September 30.
record 81.8 per cent year-on-year to USD 29.3 billion in July,
2011, due to the sterling performance of sectors like
engineering, petrochemical products and gems and jewellery.
However, this high growth rate is unlikely to be
sustained in the coming months due to uncertainty in the US
and European economies, Commerce Secretary Rahul Khullar said.
"Exports have done well... but my sense is that it (high
export growth) is not going to sustain. It is simply not
sustainable. We should see immediately by August-September
growth rates slipping," Khullar told reporters here.
During April-July, 2011-12, overseas shipments of Indian
products grew by 54 per cent to USD 108.3 billion.
Though most of the sectors posted robust expansion in
export volumes, Khullar cautioned that the exporting community
should not get carried away by these high numbers and should
brace themselves as "summer is not over".
Uncertain economic conditions in the US and Europe are
likely to hit global demand. Together, these countries account
for about 35 per cent of the country's exports.
Imports, too, increased by 51.5 per cent to USD 40.4
billion, leaving a trade deficit of USD 11.1 billion.
During the first four months of the fiscal, imports grew
by 40 per cent to USD 151 billion, led by inbound shipments of
petroleum products worth USD 42 billion, an increase of 23 per
cent year-on-year. The trade deficit during the period stood
at USD 42.7 billion.
Commenting on the data, exporters' body Fieo said: "The
growth of 81.8 per cent in exports is unheard of in recent
history."
In July, India's engineering, petroleum products and gems
and jewellery exports were worth USD 8.7 billion, USD 4.6
billion and USD 3.5 billion, respectively.
In July, imports of petroleum and oil lubricants stood
USD 11.45 billion. Imports of pearls and semi-precious stones,
gold and silver stood at USD 3.7 billion, respectively.
Fieo, too, said the high growth trend of exports is
unlikely during the third and fourth quarter.
"The problem at the domestic front with hike in interest
rates for exports and un-certainty over continuance of DEPB
Scheme have further accentuated the problem," Fieo President
Ramu Deora said.
Khullar also said that hike in interest rates are mainly
hit small and medium enterprises. "People of SME sector have
been complaining to me and that I am trying to do something on
that."
During the April-July period, sectors which registered
healthy growth in exports include engineering, petroleum
products (60 per cent), readymade garments (40 per cent),
electronics (84 per cent), chemicals (63 per cent) and
plastics (51 per cent).
Export sectors which are not doing well during the period
include tobacco, iron ore and fruits and vegetables.
During the period, pearls and semi-precious stones
increased to USD 11.16 billion, machinery (45 per cent),
electronics (75 per cent), chemicals (19 per cent).
On trade deficit, Khullar said that on an average monthly
trade gap stood at roughly about USD 10.75 billion. Going by
this, India's trade deficit may touch USD 130 billion in
2011-12.
"If you do not fix your balance of trade problem, you are
going to have a difficult issue," he said.
Talking about demand in the new markets, he said that
exports are registering good growth in new markets like in
Latin America and Africa.
"In Africa, we are doing extremely well. Numbers are
almost more than double," he said.
Further Khullar said that the country is "better
prepared" than 2008 to face any further slowdown. "We are far
more aware that where the shoe is going to start pinching. We
know what the warning signs are and where to look".
He, however, added: "We recognise that, it is going to
hurt us."
When asked, whether the government's strategy to double
exports to USD 500 billion by 2014 is on the right track in
the wake of global economic situations, the secretary said:
"The strategy we embarked on two years ago was reasonably
sensible and pragmatic. It seems to have worked. If it is
working why you want to change it".
On Duty Entitlement Pass Book (DEPB) scheme, he said, "As
a Department of Commerce official I have always argued that
DEPB should continue, but I recognise that there is a fiscal
problem."
Exporters are strongly demanding to extend the scheme for
some more years. The government has extended the tax incentive
scheme for exporters till September 30.
