Millennium Post

5% export dip, gold import rise widen Oct trade deficit

Growth rate of 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 $4.17 billion, increased the trade deficit to $13.35 billion during the month as against $10.59 billion in October 2013. However, the trade gap is lower than the previous month when it was $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 $39.45 billion.

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