India’s exports continued to shine amid slowing down signals from other sectors as well as the global economy. They grew 44.2 per cent in August year-on-year to $24.3 billion.
Similarly, imports also expanded by 41.8 per cent to $38.4 billion in August, translating into a trade deficit of $14 billion in August.
However, growth has sharply come down from a robust 82 per cent in July and stood at a four-month low in August. Analysts doubt whether momentum in export growth could be maintained, given headwinds from advanced economies. In fact, computed sequentially, export declined 17 per cent from $29.34 billion in July.
Commerce Secretary Rahul Khullar had earlier said high growth in coming months would be difficult on account of uncertainty in the Western markets. In fact, HSBC Purchasing Managers’ Index (PMI) showed that new work intakes for manufacturing sector from export markets fell in September.
In fact, financial information firm Markit Economics, which compiles PMI, said the reduction in new export orders suggested that domestic demand provided the principal support to overall new business growth, rather than outbound shipment.
However, declining rupee may give some relief to exporters. The rupee on Monday closed at $49.15/16, recovering from the day’s low of 49.57.
However, it was 0.4 per cent lower than Thursday’s close of 48.97/98. The currency markets remained shut on Friday for half-yearly closing of bank accounts.
Exporters were, however, not much enthused with the falling rupee, and said it at best gives some relief in the short-term.
Given the signals coming from the euro zone and the US, exporters have been tapping newer markets such as West Asia, Africa and South America.
Exports grew 54.21 per cent in the first five months of this fiscal, a phenomenal growth given the fact that economic growth overall in India was just 7.7 per cent in the first quarter and is not expected to improve much in the second quarter, analysts said. So, exports are proving to be an aberration amid slowing signs in the other sectors of the economy.
During the April-August period, imports expanded by 40.4 per cent to $189.4 billion. The trade gap during the period amounted stood at $54.9 billion.
Oil imports during August, 2011, were valued at $10.3 billion, translating into a growth of 48.7 per cent compared to the corresponding period last fiscal, while non-oil imports rose to $28 billion, an expansion of 39.4 per cent vis-a-vis the same month of 2010-11.
Oil imports during the April-August, 2011, period stood at $52.3 billion and non-oil imports during the five-month period amounted to $137 billion.
