July Exports Grow 18.5% Despite Rising Rupee
New Delhi: After being dented poorly by the rupee admiration, the country’s export growth may be on a recovery path. In July 2007, exports arose 18.52% as compared to 14.05% in June, clocking a marginal betterment. But, it is significantly lower than 40.67% recorded in July 2006. In rupee terms, exports managed an advancement of only 3.10% on admiration of the Indian Rupee especially against the greenback.
The rupee has ascended about 10% since late 2006, affecting income and profitability of export-oriented segments including textiles and IT.
According to the official trade data, the exports augmented in July 2007 stood at $12.49 billion from $10.54 billion in the corresponding period last year. Imports developed 20.40% to $17.50 billion in July 2007 from $14.54 billion year ago. In rupee terms, imports were up 4.74 %.
On the back of higher imports, trade deficit extended to $5.14 billion from $4 billion.
Kamal Nath, Commerce Minister said, “Export growth of over 18% shows resilience of our exporters who are able to compete in the world market against all odds.”
Mr. Nath showed confidence that in spite of a slow down, the export objective of $160 billion for the current year would be met.
July frequently depicts higher numbers on back of advance Christmas sourcing by retail chains in Europe and the United States. During April-July, exports were up 18.22% to $46.79 billion as against $39.58 billion in the matching period last year. Imports for April-July boosted 30.65% to $72.41 billion from $55.42 billion. In four months under review, trade deficit expanded to $25.61 billion as compared to $15.84 billion in the same period of the last fiscal.
Non-oil imports increased at a much faster pace of $25.86 million to $12.46 billion in July, than oil imports of $5.04 billion, which grew 8.75%. For the cumulative period of four months, the non-oil imports saw a huge jump of 43.73% to $52.53 billion against an increase of only 5.33% in oil imports for the period.