EXPORTS

EXPORTS

Exports Stack Up 57% in May

Maintaining the growth momentum that began last fiscal, India’s exports surged by 56.9% year-on-year to US$ 25.9 billion in May. But, with rising exports, the imports too went up by 54.1% at US$ 40.9 billion during the month, pushing up the trade deficit to US$ 15 billion for the month. "We will continue with this strong performance so that trade account deficit can be kept manageable," says Union Commerce and Industry Minister Anand Sharma. "We are facing this situation as the oil prices have sky rocketed due to a number of factors, including developments in the Middle East

in the last few months. The country’s trade gap is much larger than it had been in the last two-three years." During the first two months of 2011- 12, sectors which registered healthy growth include engineering (115%), electronics (80%), drugs (68%), petroleum (64%), gems and jewellery (23%), readymade garments (31%), chemicals (44%) and leather (21%). However, a few segments like tobacco, iron ore and fruits and vegetables recorded negative growth. N R Bhanumurthy, an economist at the National Institute of Public Finance & Policy, has observed, "The import figures are on expected lines as oil prices were exceptionally high at the time. But the export data is particularly optimistic, as the industry was not considered to be in a very good shape. It has helped offset the trade deficit to some extent as well."

On a cumulative basis, imports grew 33.3% to US$73.7 billion, while exports rose by 45% to US$49.7 billion between April and May 2011 over a year ago. The trade deficit amounted to US$23.9 billion in the two month period.