Exports dip 5% in Oct; surge in gold imports widens trade gap

Exports dip 5% in Oct; surge in gold imports widens trade gap

Exports dip 5% in Oct; surge in gold imports widens trade gap

Growth rate of India's exports entered the negative zone after a gap of six months, declining 5.04 per cent in October due to a dip in shipments from major sectors such as engineering, pharma and gems and jewellery.

Gold imports, which jumped manifold to USD 4.17 billion, increased the trade deficit to USD 13.35 billion during the month as against USD 10.59 billion in October 2013.

However, the trade gap is lower than the previous month when it was USD 14.24 billion.
It was in March that exports growth was in negative zone last time, when shipments had declined by 3.15 per cent.

Exporters attributed the dip in exports in October to subdued demand in the US and European markets.

"Markets are not getting better. EU is going bad. The numbers are disappointing. The government is also not announcing any measures to help us," Federation of Indian
Export Organisations (FIEO) President Rafeeq Ahmed said.

Sharing similar views, CII National Committee on Exports and Imports Chairman Sanjay Budhia too said that government should soon announce the new Foreign Trade Policy.

Top exporting sectors that registered negative growth in October include engineering (-9.18 per cent), pharma (-8.33 per cent), gems and jewellery (-2.25 per cent), cotton yarn/fabrics (-13.84 per cent) and petroleum products (-0.16 per cent).

Overall, imports grew by 3.62 per cent to USD 39.45 billion.

During April-October period of the current fiscal, the country's exports are up 4.72 per cent to USD 189.79 billion, while imports are up 1.86 per cent to USD 273.55 billion.
Trade deficit during the seven month period of 2014-15 stands at USD 83.75 billion as against USD 87.31 billion in the same period last fiscal.

Oil imports in October dipped by 19.2 per cent to USD 12.36 billion. Non-oil imports, however, grew by 18.9 per cent to USD 27.08 billion.

Import sectors which recorded negative growth in October include transport equipment (-42.37 per cent) and precious and semi-precious stones (-27.11 per cent).