The Hindu Business Line : Exports increase by 31% in April, imports up 36%

New Delhi, June 2 As the Indian rupee has been sliding in value against the dollar since the beginning of the current fiscal, this is reflected in the high export growth in rupee terms at close to 25 per cent in the first month of 2008-09.

In dollar terms too, India’s exports in April 2008 were substantially up by 31.5 per cent.

Provisional trade data released by the Department of Commerce reveal that the country’s exports during April 2008 at $14,400 million were 31.5 per cent higher than the level of $10,953 million during April 2007. In rupee terms, exports in April at Rs 57,633 crore were 24.8 per cent higher than the level of Rs 46,164 crore.

In the fiscal year 2007-08, India’s export growth in rupee terms throughout was in single digit because of the appreciating value of the rupee against dollar, in which most of the export receipts were denominated. This had led to a raft of export relief measures to cushion the adverse effect of currency appreciation in the earnings of the exporters. In 2007-08, India’s export growth in rupee terms was in single digit at 9.4 per cent, while in dollar terms it was 23.02 per cent.

Against last year’s export achievement of $155.5 billion, the annual policy supplement to the foreign trade policy unveiled on April 11 fixed a target of $200 billion, a 29 per cent increase. The first month export receipt of $14.4 billion in April 2008 was, however, considerably lower than the achievement of $16.28 billion in the previous month of March 2008.

While exporters remain happy over the sliding rupee but are quite apprehensive that some of the relief measures announced might get axed on revenue grounds at this juncture, a depreciating rupee would definitely boost their morale as they could be price-competitive.

Official sources told Business Line here that most of the time last year, the exporters had been complaining that an appreciating rupee was working against their interests since the Asian tigers and Russia and also nearer home Pakistan and Bangladesh were cornering markets because their currencies remained under-valued.

They, however, add that now the sliding rupee value would make imports dearer particularly imported items like crude oil and capital goods for domestic industry’s upgradation and expansion.

Import growth

India’s imports during April 2008 at $2,45,274 million were 36.6 per cent higher than the level of imports valued at $17,769 million in April 2007. In rupee terms, India’s imports at Rs 97,151 crore were 29.7 per cent higher than the level of imports valued at Rs 74,895 crore in April 2007.

Oil imports during April 2008 were value at $8,029 million which was 46.2 per cent higher than oil imports valued at $5,493 million in the corresponding month of 2007. Obviously, more than a spurt in consumption, the high import growth owed itself to spike in international crude prices, particularly in the month of April 2008.

Non-oil imports during 2008 at $16,245 million were 32.3 per cent higher than non-oil imports of $12,276 million in April 2007.

As a result of high export growth and a higher import growth, the country’s trade deficit surged to $9,874 million which was higher than the deficit of $6,817 million during April, 2007, an official release said here today.

Related Stories:
Exports grow 23% despite firm rupee

More Stories on : Exports & Imports | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page