The Hindu Business Line : Exports clock 23.5% rise in June amid weak global growth

New Delhi, Aug. 1 With export target for the current fiscal at $200 billion, the country’s exports during the first quarter of April to June 2008 fetched $42.84 billion in the face of weakened economic activity in major markets or anaemic economic growth forecast for the global economy this year.

Provisional figures compiled by the Directorate-General of Commercial Intelligence & Statistics (DGCI&S) and released by the Department of Commerce show that the country’s exports during June 2008 at $14.66 billion were 23.5 per cent higher than the level of $11.87 billion in June 2007. In rupee terms, exports touched Rs 62,790 crore in June 2008 which were 29.7 per cent higher than the value of exports of Rs 48,400 crore in June, 2007.

Cumulatively, exports during April-June 2008 at $42.84 billion (Rs 1,78,480 crore) as against $35.03 billion (Rs 1,44,358 crore) in the corresponding months of the last fiscal revealed a growth of 22.3 per cent in dollar terms and 23.6 per cent in rupee terms over the same period last year.

The high double-digit growth in rupee terms reflects the depreciation of the rupee against the US dollar which was estimated more than five per cent in the first quarter of 2007-08.

The country’s imports during June 2008 at $24.45 billion were 25.9 per cent higher thanthe level of imports valued at $19.42 billion in June 2007. In rupee terms, imports rose by 32.2 per cent.

Cumulatively, value of imports during the first quarter of the current fiscal at $73.27 billion was 29.7 per cent higher than $56.50 billion in the corresponding period of the previous fiscal.

Oil import

Oil import during June 2008 at $9.03 billion was 53.4 per cent higher than such oil imports valued at $5.89 billion in June 2007, reflecting largely the flare-up in global crude prices in recent period. Oil imports during the first quarter April-June 2008 at $25.52 billion were 50.2 per cent higher than $16.99 billion in the corresponding quarter of the last fiscal.

Non-oil imports in June 2008 at $15.42 billion were 13.9 per cent higher than $13.53 billion in June 2007, while cumulatively non-oil imports at $47.74 billion in the first quarter of the current fiscal were 20.9 per cent higher than the level of such imports valued at $39.51 billion in the corresponding quarter of the last fiscal.

As a result of high export growth and a higher import growth evident in the first quarter of the current fiscal, the trade deficit zoomed from $21.47 billion during April-June 2007 to $30.42 billion in the first quarter of the current fiscal.