Exports beat rupee rise, grows 35%

Merchandise exports registered a robust 35.25 per cent growth to $14.23 billion during February 2008, as against $10.52 billion in the same month last year.

This is the fastest export growth in the last four months and comes despite a strong rupee, which has risen over 10 per cent against the US dollar in the last 12 months.

"The stability in the rupee exchange rate post-December 2007 may be helping export growth," said Samiran Chakraborty, chief economist, ICICI Bank. Another reason, sources say, is that exports during the fourth quarter generally see a greater percentage of deliveries.

A more accurate analysis will be available only in June, when the government releases desegregated exports data. However, analysts say gems, jewellery, engineering goods and oil products may have been behind this strong growth.

The 11-month data show the trade deficit for April 2007-February 2008 at $72.46 billion, higher than the figure of $49.32 billion for April 2006-February, 2007.

However, analysts say the $4.2-billion trade deficit in February 2008 is healthy. "Generally, monthly trade deficit figures are in the $6-7 billion range," said Chakraborty.

In rupee terms, the exports touched Rs 56,569 crore, 21.7 per cent more than in February 2007. Cumulative value of exports for the April 2007-February 2008 period stood at $13.84 billion, as against $11.26 billion in the year-ago period. This implies annual growth of 22.9 per cent in dollar terms and 8.94 per cent in rupee terms.

India's imports during February 2008 were valued at $18.46 billion, an increase of 30.53 per cent from $14.14 billion last February. Cumulative value of imports for the April-February 2007-08 period was $21.08 billion, as against $16.19 billion in the same period last year.

This implies an annual growth of 30.21 per cent in dollar terms and 15.42 per cent in rupee terms.

Oil imports during February 2008 were valued at $62.72 billion, 39.52 per cent higher than $44.95 billion in the corresponding period last year.

Oil imports during April-February 2007-08 stood at $66.01 billion, 26.81 per cent higher than the $52.05 billion in the year-ago period.

Non-oil imports also increased by 26.35 per cent in February 2008 to $12.19 billion as against $9.65 billion in the same month last year.

During April 2007-February 2008, non-oil imports were valued at $14.48 billion, 31.83 per cent higher than the same period last year.