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Exports of goods grew for the fourth consecutive month in December 2016, posting a year-on-year increase of 5.72 per cent to $23.88 billion.
The growth, despite the inconveniences caused to small enterprises due to demonetisation, signals a possible revival in global sentiments, say exporters.
Imports during the month increased marginally by 0.46 per cent to $34.25 billion resulting in narrowing of trade deficit to $10.36 billion against a deficit of $11.5 billion in the same month last year.
“Global sentiments have started showing positive signs and the US Fed rate hike and demonetisation have had very limited impact on exports. Labour-intensive sectors like gems and jewellery, handicraft, marine and engineering have shown impressive growth,” said SC Ralhan from the Federation of Indian Export Organisations.
Overall exports in the April-December 2016 period grew 0.75 per cent to $198.80 billion while imports declined 7.42 per cent to $275.35 billion.
Trade deficit shrunk to $76.54 billion in April-December 2016 compared with $100.07 billion in the same period last year.
“The signs of an uptick in the American economy augur well for exports and help has come in partly from the exchange rate advantage with strengthening of the dollar,” said TS Bhasin from the Engineering Export Promotion Council.
Exports have grown across 18 out of 30 major product groups in December, led by petroleum, iron ore, engineering goods, jute manufacturing, oil meals, oil seeds, coffee, marine products, organic & inorganic chemicals, drugs & pharmaceuticals and gems & jewellery.
“We are on course to achieve exports of about $270 billion to $280 billion during the current fiscal,” Ralhan said.
Exports declined 15.85 per cent in the previous fiscal to $261 billion.
Non-petroleum exports in December 2016 valued at $21.11 billion were 5.4 per cent higher compared to December 2015.
Oil imports during December 2016 were at $7.64 billion, a 14.61 per cent jump over that in the same month last year while non-oil imports during the month at $26.60 billion were 2.98 per cent lower.
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