The Hindu Business Line : Trade deficit surges to $49.1 b during April-Aug

New Delhi, Oct. 1 Even as the country’s exports and imports registered a substantial growth 35.1 per cent and 37.7 per cent in dollar terms, respectively, during the first five months of the current fiscal (April to August), the trade deficit during the period has shot up to a $49.1 billion from a level of $34.5 billion in the corresponding months of the previous fiscal.

Latest provisional figures released by the Commerce Ministry show that the country’s exports during August 2008 at $16 billion were 26.9 per cent higher than level of $12.6 billion during August 2007, while cumulatively exports during the first five months of the current fiscal at $81.2 billion were 35.1 per cent higher than the level of $60.1 billion in the corresponding period of last fiscal.

In rupee terms, exports at Rs 3.42 lakh crore during April-August 2008 grew by 39.1 per cent from Rs 2.46 lakh crore in the corresponding months of the previous fiscal.

On the import front, imports during August at $29.9 billion showed a hefty 51.2 per cent growth against $19.8 billion in August 2007, while cumulatively imports during the period under review at $130.3 billion grew by 37.7 per cent over the level of $94.6 billion during April-August 2007.

In rupee terms, imports grew by 41.9 per cent during April-August 2008 at Rs 5.50 lakh crore against Rs 3.87 lakh crore in the comparable months of the previous fiscal.

Oil imports up

Oil imports during August 2008 at $10.96 billion were 76.7 per cent higher than oil imports of $6.2 billion in the corresponding month of 2007, while cumulative oil imports at $45.96 billion were 59.6 per cent higher than the oil imports of $28.8 billion in the corresponding period last year.

Non-oil imports in August 2008 at $18.9 billion were 39.6 per cent higher than such imports of $13.6 billion in August 2007, while cumulative non-oil imports during the period under review at $84.4 billion.

Commerce Ministry officials say that while export growth was buoyed up by the depreciating rupee and also supplemented by high growth in traditional items such as engineering goods, chemicals and non-traditional items such as petroleum product exports, they are worried over the sustainability of this uninterrupted uptrend particularly after November 2008 when the effects of the financial market turmoil and slowdown in import demand from major markets such as the US and Europe would start playing themselves out.