India to miss the exports target of US$ 326 billion for 2013-14
India's merchandise export declined 3.7% to $26.689 billion in February 2014, while snapping decline for last seven sequential months. However, the merchandise imports continue to decline sharply at 17.1% to $33.82 billion in February 2014, helping the trade deficit to narrow to $8.13 billion in February 2014 compared to $14.12 billion in February 2013.The decline in merchandise imports was led by 24.5% slump in non-oil imports to $20.12 billion, while the oil imports also dipped 3.1% to $13.7 billion in February 2014. The oil import share in total imports stood at 40.5% in February 2014 compared to 34.7% in February 2013. India's basket of crude oil declined 5.8% to $106.19 per barrel in February 2014 over February 2013.
India's merchandise exports has increased 4.8% to $282.78 billion in April-February FY2014, snapping 2.6% dip recorded in the corresponding period of last year. On the other hand, India's merchandise imports fell 8.7% to $410.86 billion in April-February FY2014, against 0.6% growth recorded in April-February FY2013. The decline in imports was driven by 13.4% fall in non-oil imports to $259.02 billion in April-February FY2014.
With the higher growth in exports, India's merchandise trade deficit narrowed to $128.09 billion in April-February FY2014 from $179.93 billion in April-February FY2013. Trade deficit as a percentage of GDP was lower at 6.7% in April-February FY2014 compared to 9.7% in April-February 2013.
Exports target unlikely to be met
The Finance Minister in Interim Budget 2014-15 presented in Parliament on 17 February 2014, had estimated merchandise exports to touch US$ 326 billion, indicating a growth rate of 6.3%. However, the exports has to clock a level of US$ 43.23 billion in the month the of March 2014, registering a growth of around 40% over March 2013, to reach a target of US$ 326 billion in 2013-14. Thus, the exports target of 2013-14 is all set to be missed.
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Trade in Rupees terms
The merchandise exports in Rupee terms moved up 11.5% to Rs 159858 crore, while imports declined 4.1% to Rs 210451 crore in February 2014 over February 2013. The trade deficit narrowed to Rs 50593 crore in February 2014 compared to Rs 75946 crore in February 2013.
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