Increased overseas sales of petroleum products, engineering goods, gems and jewellery in June saw exports rise 23.5 per cent to $14.6 billion, from $11.8 billion in the same month last year. Significantly, the rupee, which depreciated by more than 7 per cent against the dollar, also boosted the export growth rate in rupee terms, which stood at 29.7 per cent in the month under consideration.
The June figures will go a long way in achieving the export target of $200 billion set for the current financial year (2008-09). Data released by the commerce ministry today showed that in the first quarter of the current fiscal, exports grew by 22.3 per cent to $42.84 billion from $35.03 billion in the same period last fiscal.
“Apart from the depreciating rupee seen in the past few weeks, high inflation in competitor countries like Vietnam and Sri Lanka has led to greater competitiveness of Indian goods in overseas markets,” said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO).
However, Indian exporters feel that export growth rate could come under pressure in the coming months. “Revival of capital markets, enhanced foreign investment inflows and reduced price of crude oil could lead to appreciation in the rupee against the dollar. As a result, Indian export growth could come under pressure. This in turn may make the export target unachievable,” added Sahai.
Imports during June rose 25.9 per cent to $24.45 billion, as against $19.42 billion in the year-ago month. The imports growth was on account of an 53.4 per cent increase in crude prices, which stood at $9.03 billion, as against $5.8 billion in the year-ago month. This surge was seen in spite of an average international price of crude oil at $129.72 per barrel during the month.
Non-oil imports, comprising capital goods and other machinery as well as industrial inputs, increased by 13.9 per cent to $15.42 billion, compared to $13.5 billion in the same month last year. This pace of growth is lower than the 17.4 per cent growth seen in the previous month.
The trade deficit in June 2008 widened 29.58 per cent to $9.7 billion, up from $7.5 billion in the same month last year. In the April-June period, India’s trade deficit widened 42 per cent to $30.42 billion, as against $21.47 billion in the year-ago period.