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Trade has slowed down considerably. There was a sharp slowing down in exports in August 2011 compared to July when they had grown by almost 82 per cent.
The trade deficit has also widened to $14 billion.
According to data released by the Commerce Ministry on Monday, exports in August 2011 rose 44.25 per cent to $24.31 billion, while imports increased by 41.82 per cent to $38.35 billion.
The Commerce Ministry had said last month that the period ahead will be tough for exports because of the poor demand in traditional markets such as the US and the European Union. The Government is working out an incentive package for exporters.
Exports soared by 54.2 per cent to $134.5 billion during April-August, while imports during the same period jumped by 40.4 per cent to $189.4 billion. The trade deficit widened to $54.9 billion during April-August 2011 from $47.7 billion in April-August 2010.
The main drivers of export growth so far this fiscal were readymade garments, electronics, petroleum products, engineering, gems and jewellery, while that of imports were machinery, petroleum products, chemicals, electronics, coal, gold and silver.
Plea for interest subvention scheme
Oil imports grew by 48.7 per cent to $10.3 billion in August, while they grew by 27 per cent to $52.3 billion during April-August. Non-oil imports, including capital goods, increased by 39.4 per cent to $28 billion in August, while they grew 46.2 per cent to $137 billion during April-August.
Mr Ramu S. Deora, President, Federation of Indian Export Organisations (FIEO), said, “We may have to face further decline in export growth in the third and fourth quarters due to the recessionary trend in advanced economies.”
He said the Government should reintroduce the interest subvention scheme for exporters in the medium- and small-scale export category so that exporters can sustain the competitiveness.
The main drivers of export growth so far this fiscal were readymade garments, electronics, petroleum products, engineering, gems and jewellery.
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