Exports growth slipped to 7.33 per cent in July after witnessing a double-digit expansion in the previous two months, pushing up the trade deficit to one-year high of $12.22 billion.
Exports stood at $27.73 billion in July as compared to $25.84 billion in the same month last year. In June and May, the growth was 10.22 per cent and 12.4 per cent, respectively.
The sectors that put up a good show include textiles (13.3 per cent), petroleum products (28 per cent), engineering (23.9 per cent), leather (17.23 per cent), marine products (25 per cent), oil seeds (19.25 per cent), chemicals (16.67 per cent) and pharmaceuticals (10.78 per cent).
Imports increased by 4.25 per cent year-on-year to $39.95 billion in July. This is the second consecutive growth in the inbound shipments after remaining in the negative for the past several months.
Deficit at $12.22 billion The trade deficit of $12.22 billion is one-year high as the previous high was $12.49 billion in July 2013.
According to exporters’ body FIEO, gems and jewellery and electronics continue to be a cause of concern as their negative growth is pulling down the overall exports growth. It wants the government to announce some major initiatives in the forthcoming Foreign Trade Policy to boost exports.
The FIEO expressed hope that exports would cross $350 billion by the end of the fiscal.
In the April-July period, exports grew by 8.62 per cent to $107.8 billion. Imports, however, dipped by 3.8 per cent to $153.15 billion during the first four months of this financial year.
The trade deficit during the period stood at $45.31 billion as against $59.91 billion in the same period last year.
Oil imports Oil imports increased by 12.75 per cent to $14.35 billion in July. Non-oil imports during the month under review were up 0.03 per cent to $25.6 billion.
Gold imports dipped by 26.39 per cent to $1.81 billion in July from $2.46 billion in the same month last year.
Sectors which registered negative growth include tea (8.72 per cent), rice (21.68 per cent), tobacco (12.64 per cent), oil meals (47.73 per cent), iron ore (72 per cent), gems and jewellery (17.42 per cent), electronic goods (20.14 per cent) and cotton textiles (4.38 per cent).
Import sectors which recorded negative growth are fertiliser (27.38 per cent), machine tools (10 per cent), transport equipment (47.86 per cent) and project goods (50 per cent).
Oil imports during April-July 2014 grew by 6.65 per cent $55.14 billion. However, non-oil imports dipped by 8.82 per cent to $98.01 billion during the same period.
