The Hindu Business Line : Dec sees lower dip in exports

FACT FILE
Cumulative export receipts during April-December were $130.8 billion ($113.5 billion).
Export of petroleum products has come down to $20 billion in Dec 2008.

G. Srinivasan

New Delhi, Jan. 6 There is some cheer for the Government with double-digit decline in exports drastically slowing down to single digit in December with preliminary estimates showing export decline by 1.6 per cent in dollar terms, against 9.9 per cent in November and 12.1 per cent in October 2008.

Highly-placed sources in the Government told Business Line that however labour-intensive exports such as textiles and clothing and handicrafts excluding hand-made carpets continue to maintain high fall ranging from 64.4 per cent in the case of handicrafts to 18.6 per cent in the case of cotton yarn/fabrics/made-ups etc.

However, readymade garment of all textiles performed a shade better by fetching $784 million with a growth 13.6 per cent, even though overall RMG exports registered a decline of 0.6 per cent in April-December, 2008.

The sources said while the tentative December export receipts would be $12.6 billion against $12.8 billion in the corresponding month of 2007 showing a decline of 1.6 per cent, the cumulative export receipts during April-December 2008 at $130.8 billion, against $113.5 billion, showing a still positive growth of 15.3 per cent in dollar terms.

“The pace of decline is tapering off and we hope that the arrest in declining trend would continue till March,” the official said.

The official is confident that overall export growth during the current fiscal would be in the range of $175 billion, if the deceleration in declining trend maintains the recent traction.

Interestingly, petroleum product exports, which fetched $22 billion in December 2007, has come down to $20 billion in December 2008, reflecting the radical fall in global crude prices in recent months. However, engineering exports, which fetched $26 billion in December 2007, have yielded close to $32 billion in December 2008, registering a 19.2 per cent growth.

Imports

Similarly, on the import front, growth has moderated to 10.6 per cent growth in December 2008 at $20.7 billion ($18.6 billion). Import of gold and silver has fallen to $734 million ($782 million), while import of petroleum, crude and products plummeted to $5.1 billion ($6.9 billion). Import of iron and steel rose to $796 million ($627 million), showing a substantial growth of 26.9 per cent, the sources revealed.

Tentative estimates show that overall import growth during April-December 2008 is estimated at running at a higher gear of close to 30 per cent at $222.9 billion, against $172.1 billion in April-October 2007. The official figure for the month of December in final form would be released on February 1.

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