The Hindu Business Line : Exports grow 23% despite firm rupee

New Delhi, May 1 Amid constraints including a persistently rising rupee that eroded the margin of exporters and high transaction cost, the country’s export during 2007-08 hit $155.5 billion with exports in the final month March alone touching $16.28 billion.

Provisional foreign trade data released by the Commerce Ministry show that the country’s exports in March were $16.28 billion. Cumulative value of exports for the whole fiscal year 2007-08 amounted to $155.5 billion, against $126.4 billion in 2006-07, logging a growth of 23.02 per cent.

In rupee terms, exports grew by 9.39 per cent at Rs 6,25,471.22 crore in 2007-08 (Rs 5,71,779 crore).

Imports

Imports in March at $23.17 billion showed an increase of 35.24 per cent over $17.13 billion in the corresponding month of 2007. Cumulatively, the value of imports during 2007-08 at $235.9 billion saw a growth of 27.01 per cent ($185.7 billion). In rupee terms, imports during 2007-08 at Rs 9,49,133.82 crore (Rs 8, 40,506 crore) registered a growth of close to 13 per cent.

Trade deficit

With cumulative high export growth at 23.02 per cent and a higher import growth of 27.01 per cent, the country’s trade deficit zoomed from $59.32 billion in 2006-07 to $80.39 billion in 2007-08. The main factor behind the rise in import owed to a jump in oil import bill which shot up to $77 billion in 2007-08 ($57 billion), with world’s crude prices on a rollercoaster ride in recent months breaching the $100 per barrel. India’s oil imports in March were estimated at $8.6 billion which was 77 per cent higher than oil imports valued at $4.9 billion in corresponding month of 2007.

Non-oil imports

Non-oil imports during March at $14.54 billion was 18.73 per cent higher than $12.24 billion in March 2007, while cumulatively non-oil imports registered a growth of 23.36 per cent in 2007-08 at $15.9 billion ($12.9 billion).

Talking to media persons, the Commerce Secretary, Mr Gopal K. Pillai, said that the annual policy supplement released by the Ministry last month did indicate that export target would fall short by $5 billion but the actual turned out to be $4.5 billion.

He said engineering, chemicals, pharmaceuticals, gem and jewellery and petroleum products did well last fiscal and export of textiles and articles of apparel also now show some pickup.

Officials contend that to reach $200 billion export target set for the current fiscal, the annual policy statement unveiled swift tax refund and interest subsidies for many exports for another year with continuation of tax relief to export-oriented units beyond March 2009, which was subsequently extended to information technology companies quartered in software technology parks.

The policy also laid stress on new incentives to promote exports of vegetables, sports goods, toys and computer hardware with the Union Commerce and Industry Minister, Mr. Kamal Nath, pitching to grab a five per cent share in global trade by 2020, against the current 1.5 per cent share.

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