Exports up 7.5% at $7.29 billion

India's exports recorded a growth of 7.51 per cent in September 2005 at $7.29 billion, compared with $6.78 billion during September 2004.

According to the provisional data released by the commerce and industry ministry today, imports during September 2005 rose 18 per cent to $10.48 billion, against $8.94 billion in the corresponding period last year.

The slowdown during September 2005 pulled down the overall export growth during April-September 2005-06 to 20.5 per cent. Exports during the first half of the fiscal were estimated at $43.22 billion compared with $35.86 billion during April-September 2004-05.

Imports surged 33 per cent to $63.55 billion during April-September 2005-06, against $47.74 billion in the corresponding period last year.

The country's trade deficit jumped to $20.32 billion compared with $11.88 billion during April-September 2004-05.

The surge in imports during the first six months of the fiscal was mainly because of a 43 per cent increase in oil imports to $20.83 billion, compared with $14.57 billion in the corresponding period the previous year. Non-oil imports also increased by nearly 29 per cent to $42.71 billion from $33.17 billion in April-September 2004-05.

According to DK Joshi, senior economist at Crisil, the slowdown in exports during September cannot be attributed to a lower base as the base has been high over the past five-six months.

"We can't conclude that there is a slowdown. We will have to wait and watch for a few more months. Sometimes there are periodic fluctuations," he said, adding that higher oil prices continued to be an area of concern in terms of the trade deficit and pressure on the rupee.

Joshi said the increase in trade deficit reflected that imports were on the rise. He, however, added that it was encouraging to note that the surge in imports was mostly export-related or related to capital goods used in the manufacturing sector.

Nagesh Kumar, Director-General of RIS said the 21 per cent export growth during the first six months was encouraging as it was not easy to sustain this level of exports in the highly competitive export market.

"This shows the interest India has generated as a suitable market to source manufactured goods," he said.

Commerce and Industry Minister Kamal Nath told Business Standard that he would ask export promotion councils to ensure that the growth in exports led to commensurate growth in employment.

The minister is scheduled to undertake a mid-year export review with all export promotion councils on Tuesday.