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Exports post mere 3.8% growth in Nov, slowest in 2 years
After being hit by global slowdown and accompanying moderation in demand in developed markets, India’s exports recorded their slowest pace of growth in two years at 3.8 per cent in November.
In November, 2010, the country’s overseas shipments amounted to $21.48 billion. “The November export growth is two-year low. If it will decline at this pace, the exports growth may enter a negative zone,” export body Fieo Director General Ajay Sahai said.
The growth rate is the lowest since October, 2009, when it contracted by 6.6 per cent. In sharp contrast, imports grew at a faster rate of 24.5 per cent year-on-year to $35.9 billion in November, translating into a trade deficit of $13.6 billion, according to Commerce Ministry data released on Monday.
From a peak of 82 per cent in July, export growth slipped to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October. In November, oil imports grew by 32.28 per cent to $10.3 billion, while non-oil imports rose by 21.69 per cent to $25.6 billion vis-a-vis the year-ago period.
In the eight-month April-November period, exports aggregated to $192.69 billion, a year-on-year growth of 24.55 per cent, thanks to the surge witnessed in the early months of the fiscal.
Experts opined that the country’s exports growth during the entire fiscal would stand at about 20 per cent. “Though demand condition is not good in the US and Europe, other markets in the Asean region and Latin America are doing good,” Indian
Institute of Foreign Trade Director K T Chacko said. A steady rise in imports by 30.24 per cent to $309.53 billion during the eight-month period resulted in the trade gap widening to $116.83 billion. Commerce Secretary Rahul Khullar has expressed concern over the increasing balance of trade and said at this rate, it may breach the USD 150 billion mark during 2011-12.
Khullar had said total exports for the current fiscal will amount to about $280 billion, as against the targeted $300 billion, due to the slowdown in key European markets.
After being hit by global slowdown and accompanying moderation in demand in developed markets, India’s exports recorded their slowest pace of growth in two years at 3.8 per cent in November.
In November, 2010, the country’s overseas shipments amounted to $21.48 billion. “The November export growth is two-year low. If it will decline at this pace, the exports growth may enter a negative zone,” export body Fieo Director General Ajay Sahai said.
The growth rate is the lowest since October, 2009, when it contracted by 6.6 per cent. In sharp contrast, imports grew at a faster rate of 24.5 per cent year-on-year to $35.9 billion in November, translating into a trade deficit of $13.6 billion, according to Commerce Ministry data released on Monday.
From a peak of 82 per cent in July, export growth slipped to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October. In November, oil imports grew by 32.28 per cent to $10.3 billion, while non-oil imports rose by 21.69 per cent to $25.6 billion vis-a-vis the year-ago period.
In the eight-month April-November period, exports aggregated to $192.69 billion, a year-on-year growth of 24.55 per cent, thanks to the surge witnessed in the early months of the fiscal.
Experts opined that the country’s exports growth during the entire fiscal would stand at about 20 per cent. “Though demand condition is not good in the US and Europe, other markets in the Asean region and Latin America are doing good,” Indian
Institute of Foreign Trade Director K T Chacko said. A steady rise in imports by 30.24 per cent to $309.53 billion during the eight-month period resulted in the trade gap widening to $116.83 billion. Commerce Secretary Rahul Khullar has expressed concern over the increasing balance of trade and said at this rate, it may breach the USD 150 billion mark during 2011-12.
Khullar had said total exports for the current fiscal will amount to about $280 billion, as against the targeted $300 billion, due to the slowdown in key European markets.
