JOIN USAmid gold rush, exports surge to $27 bn in August
After the disappointing industrial production numbers, India’s August export registered the slowest growth in the current financial year. Exports increased 2.4 per cent or close to $27 billion while gold imports more than doubled since last month.
Gold imports in August jumped to $2.03 billion compared to less than one billion in July. The trade deficit was at 10.83 billion.
Exporters said they were expecting government measures to boost exports.
Experts said weak global recovery and fresh slowing in Europe was responsible for exports slowdown.
“While US and emerging economies are posting good results, Europe has again fallen into contraction,” Apex Exporters body FIEO said as it demanded an immediate restoration of interest subsidy on exports.
“The government should immediately reintroduce interest subvention on exports from April 2014 as uncertainty has impacted MSME exporters with banks stopping the passage of interest subsidy to them, thereby, raising costs by 3 per cent,” experts said.
Experts also held the slowdown in China’s imports as responsible for slowdown in India’s exports.
India’s gems and jewellery exports slowed by 10.31 per cent to $43.23 billion in August. Exports of electronic goods declined by 17.67 per cent to $547 million.
Petroleum products, iron ore, tea, coffee, rice, tobacco and spices exports too recorded declines. However, pharmaceuticals, chemicals and engineering exports registered growth of 7 per cent, 2.66 per cent and 22.2 per cent respectively.
On the import side, oil imports declined by nearly 15 per cent in August to $12.83 billion. However, non-oil imports during the month were up by 13.82 per cent to $24.95 billion. Fertiliser, coal, petroleum, transport equipment, project goods and silver too registered a decline.