PULLED down by a rapidly rising rupee, growth in India’s exports — valued at $72.2 billion in the first half of the fiscal — decelerated to 18.52% compared to a sharp 27% rise to $60.8 billion recorded in the comparable period of the previous fiscal.
India’s exports during September were valued at $12.79 billion, up 19.26% over $10.73 billion during September 2006. In rupee terms, exports touched Rs 51,621.52 crore which was 4.31% higher than the value of exports during September 2006.
India’s imports during September were valued at $ 17.21 billion, an increase of 2.31% over imports in September 2006, valued at $16.82 billion. In rupee terms, imports declined by 10.51%.
Oil imports during September were valued at $5.49 billion, up 7.98% over oil imports in the corresponding period last year, valued at $5.09 billion. Oil imports during April-September were valued at $31.39 billion, up 8.26% over oil imports of $29 billion in the corresponding period last year.
Non-oil imports during September were estimated at $ 11.71 billion, down 0.15% lower over non oil imports of $11.73 billion in September 2006. Nonoil imports during April-September were valued at $77.80 billion, up 34.13% over the level of such imports, $58 billion, in April-September 2006.
The trade deficit for April-September 2007 was estimated at $36.92 billion compared to a deficit of $26.02 billion during April-September 2006.
The adverse effect of the falling value of the dollar against the rupee gets reflected more prominently in the export figures valued in rupee terms which recorded a marginal 5.34% rise to Rs 2,95,233 crore in the first half of 2007-08 compared to 34.15% growth (to Rs 2,80,275 crore) recorded in the first half of the previous fiscal.
Responding to the rupee touching a new high on Thursday, commerce minister Kamal Nath said the Cabinet will be meeting in the next two weeks to review further measures. “There won't be sops but remissions and refunds of taxes and levies so that a level playing field is provided to exporters," he said. On an optimistic note, the minister said that India's exports will pick up momentum from October and the government hopes to meet its annual target of $160 billion.
Imports, on the other hand, has been rising steadily, although there has been a slow down in September. Cumulative value of imports for April-September 2007 was $109.2 billion (Rs.4,46,420.86 crore) against $87 billion (Rs 39,9815.04 crore)in the year-ago period, registering a growth of 25.51% in dollar terms and 11.66% in rupee terms, respectively. Last year, the import growth rate in the first half in dollar terms was 23.45%, while in rupee terms it was 29.87%