The Hindu : Business : Exports dip by 12% to $12.8 billion in October

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Exports dip by 12% to $12.8 billion in October

Special Correspondent

However, shipments register over 23% rise in April-October

Trade deficit widens to $72.9 billion in seven months
Oil imports up 22% at $7.9 billion in October

NEW DELHI: Exports declined by over 12 per cent in October owing to global economic slowdown, while imports grew by more than ten per cent, widening further the trade deficit.

For the first time in many years, exports have seen a decline on a monthly basis. In October, exports stood at $12.8 billion against $14.6 billion in October 2007. On the other hand, imports surged to $23.4 billion in from $21.1 billion a year ago.

However, exports went up by over 23 per cent to $107.8 billion in the current fiscal so far (April-October) from $87.1 billion in the same period last fiscal. The Centre has set an export target of $200 billion in the current fiscal.

Total imports during April-October were $180.8 billion against $132.8 billion in the same period last year.

Oil imports in October were billed at $7.9 billion, 22 per cent more than $6.52 billion in the corresponding month last year. Non-oil imports during the month were up only by 5.5 per cent at $15.4 billion against $14.6 billion a year ago.

The most worrying aspect for the Centre would be the growing trade deficit. As against the trade deficit of $45.6 billion between April and October in 2007-08, it has swelled to $72.9 billion in the current fiscal so far.

The negative outlook in the exports sector has forced industry bodies to seek relief package for the exporters. “A steep fall in exports is bound to have a significant impact on our growth for the next quarter.

Unless the Government comes out with a complete package for the exporters immediately, we may see further fall in our exports in the current year” said Amit Mitra, Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI). While welcoming the Government’s recently announced measures for exporters like extending the period of entitlement for pre-shipment and post-shipment rupee export credit, he, however, said this remained inadequate and there were a number of other measures like restoration of the interest subvention scheme till March 2009 and increased duty drawback rates that exporters were looking at to help them tide over these crises.

Similarly, the Federation of Indian Export Organisations (FIEO) has said under present circumstances, it would be difficult to meet the export target. Fearing huge job losses in the export-oriented sectors in the months ahead, the FIEO has demanded a stimulus package, especially for the medium and small enterprises, to boost exports.

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