Exports clocked 11.64 per cent growth in July, the highest recorded in nearly two years.
Imports dipped by 6.2 per cent. However, the trade deficit stood unchanged at the $12.2 billion level that was witnessed in June. While exports soared to $25.83 billion in July, imports declined to $38.1 billion. Gold and silver imports, which dipped by 34 per cent to $2.9 billion in July from $4.4 billion in the same period last year, helped to maintain the trade deficit at the June level.
Addressing the media here on Monday, Commerce Secretary S. R. Rao said that the incentives announced by the government, including a hike in the rate of interest subsidy, would help overseas shipments grow in the near future. “We do hope that these measures would help us in improving our export t performance in the coming months. We are looking at a 10 per cent growth in exports this fiscal. The continued focus on Africa, Latin America, ASEAN and Far East regions should help us increase exports,” he said.
During April-July, exports grew by 1.72 per cent to $98.2 billion. Imports increased by 2.82 per cent to $160.7 billion during the period. The trade deficit during the first-four months of this fiscal stood at $62.4 billion. In May and June, shipments were in negative zone.
Oil imports in July declined by 8 per cent to $12.7 billion, and during April-July, it increased 2.65 per cent to $54.5 billion. Non-oil imports fell 5.26 per cent to $25.39 billion. However, during the first-four months, it grew 2.9 per cent to $106.15 billion.
Sectors that performed well in July include textiles, ready-made garments, chemicals and pharmaceuticals. Imports of vegetable oil, precious and semi-precious stones and fertilizers declined during the month.The Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said the double digit growth in exports, coupled with positive signs coming from U.S. and Europe, were indicative of the trend to follow in the coming months.