Exports during November 2011 grew at the slowest pace in two years, registering an increase of just 3.87 per cent over the same month in 2010 to $22.32 billion. The poor showing was mainly on account of the weak demand in the traditional markets such as the European Union and the US.
Meanwhile, imports in the month rose 25.55 per cent to $35.92 billion, leaving a trade gap of $13.6 billion, according to the data released by the Commerce Ministry on Monday.
However, shipments during April-November 2011 grew by a robust 33.21 per cent to $192.7 billion, while imports during the period jumped by 30.2 per cent to $309.53 billion. This resulted in the trade deficit widening to $116.8 billion during April-November 2011, from $93 billion during the same period the previous fiscal.
The Government is concerned over the rising trade deficit as the gap between exports and imports is expected to be as high as $155-160 billion by the end of this fiscal.
Oil imports during November were up 32.28 to $10.3 billion, while imports of the commodity during April-November 2011 grew 42.67 per cent to $94.11 billion.
Non-oil imports (including capital goods) in November were $25.61 billion, recording a 21.69 per cent increase, while during April-November 2011 they were to the tune of $215.41 billion, up 25.46 per cent.
Mr Ramu S. Deora, President, Federation of Indian Export Organisations, maintained that despite all odds and the dismal global situation, exports would touch $275 billion by this fiscal-end.
“To boost exports and arrest the trade deficit, the Government should provide export finance at concessional rate of not more than 7 per cent for small and medium export segment and 9 per cent for large business houses,” he demanded, adding that an increase in input costs and packaging material is making exports uncompetitive and nullifying the scope of margins offered by rupee depreciation.