Rising exports and declining imports in September narrowed the trade deficit to a 30-month low of $6.76 billion, which may help rupee to stabilise after excessive volatility in the past few months.
'Imports have shown a significant fall of 18.1 per cent and exports have shown a rise of 11.15 per cent in September.
The trade deficit is the lowest in the last 30 months,' commerce secretary S R Rao told reporters here.
While exports of textiles, pharmaceuticals and agriculture recorded decent growth, imports came down mainly on account of a decline in inward shipments of gold and oil. Imports of gold and silver plunged more than 80 per cent to $0.8 billion in September from $4.6 billion a year earlier. Oil imports declined by about 6 per cent to $13.19 billion.
'I am confident that import-containment measures put in place for non-essential imports are playing out extremely well and we need to continue this so that our rupee becomes stronger,' Rao added.
The rupee has depreciated by about 15 per cent since April.The previous low for the trade deficit was $3.8 billion in March 2011. The gap was $10.9 billion in August.
Exports and imports in September stood at $27.68 billion and $34.4 billion, respectively.
During April-September this fiscal, exports grew by 5.14 per cent to $152.1 billion while imports declined by 1.8 per cent to $232.23 billion. The trade deficit for the six-month period was $80.1 billion. The Secretary expressed confidence that the export target of $325 billion this fiscal would be achieved.
India's trade deficit has been fuelled by high imports of gold and crude oil, contributing to the current account deficit, which has touched an all-time high of 4.8 per cent of GDP, or $88.2 billion, in 2012-13.
During the first half of this fiscal, gold and silver imports rose 8.7 per cent to $23.1 billion.
Rao said the import figure for September was the lowest in the past 30 months.
'The government has taken steps to curtail imports of non-essential commodities, particularly precious stones. That is the singular reason for decline in trade deficit,' he said.
Oil imports during April-September grew 3.58 per cent to $82.87 billion. Non-oil imports declined 4.55 per cent to $49.35 billion. In September, they dipped 24.19 per cent to $21.24 billion.
Rao said engineering, which contributes the most to the country's exports, has started showing positive growth. Engineering exports rose 15.2 per cent to $5.2 billion in September, while they declined 0.62 per cent to $28.07 billion in April-September.
Rao said with the Commerce Ministry having resolved the 80:20 issue, there should be a resurgence in the export of gems and jewellery. The Reserve Bank of India introduced the 80:20 scheme in July, under which 20 per cent of gold purchased from overseas had to be exported to avail of further imports of the metal. The restriction was aimed at curbing the widening current account deficit.
A government official last month said more than 20 per cent of the imported metal could be exported, clearing the confusion that had held up inbound shipments at customs.
Sensex greets news with 266-point rise
Mumbai: The benchmark Sensex erased early losses and surged 266 points to close above the 20,000 mark for the first time in almost three weeks after the latest trade data indicated the government’s efforts to rein in the current account deficit are working.
Rupee surprises with 14p drop to 61.93 per $
Mumbai: Shrugging off the smart rise in local equities and sustained capital inflows, the Indian rupee on Wednesday depreciated by 14 paise to close at 61.93 against the Greenback following strong dollar overseas and fresh dollar demand from importers.
'Imports have shown a significant fall of 18.1 per cent and exports have shown a rise of 11.15 per cent in September.
The trade deficit is the lowest in the last 30 months,' commerce secretary S R Rao told reporters here.
While exports of textiles, pharmaceuticals and agriculture recorded decent growth, imports came down mainly on account of a decline in inward shipments of gold and oil. Imports of gold and silver plunged more than 80 per cent to $0.8 billion in September from $4.6 billion a year earlier. Oil imports declined by about 6 per cent to $13.19 billion.
'I am confident that import-containment measures put in place for non-essential imports are playing out extremely well and we need to continue this so that our rupee becomes stronger,' Rao added.
The rupee has depreciated by about 15 per cent since April.The previous low for the trade deficit was $3.8 billion in March 2011. The gap was $10.9 billion in August.
Exports and imports in September stood at $27.68 billion and $34.4 billion, respectively.
During April-September this fiscal, exports grew by 5.14 per cent to $152.1 billion while imports declined by 1.8 per cent to $232.23 billion. The trade deficit for the six-month period was $80.1 billion. The Secretary expressed confidence that the export target of $325 billion this fiscal would be achieved.
India's trade deficit has been fuelled by high imports of gold and crude oil, contributing to the current account deficit, which has touched an all-time high of 4.8 per cent of GDP, or $88.2 billion, in 2012-13.
During the first half of this fiscal, gold and silver imports rose 8.7 per cent to $23.1 billion.
Rao said the import figure for September was the lowest in the past 30 months.
'The government has taken steps to curtail imports of non-essential commodities, particularly precious stones. That is the singular reason for decline in trade deficit,' he said.
Oil imports during April-September grew 3.58 per cent to $82.87 billion. Non-oil imports declined 4.55 per cent to $49.35 billion. In September, they dipped 24.19 per cent to $21.24 billion.
Rao said engineering, which contributes the most to the country's exports, has started showing positive growth. Engineering exports rose 15.2 per cent to $5.2 billion in September, while they declined 0.62 per cent to $28.07 billion in April-September.
Rao said with the Commerce Ministry having resolved the 80:20 issue, there should be a resurgence in the export of gems and jewellery. The Reserve Bank of India introduced the 80:20 scheme in July, under which 20 per cent of gold purchased from overseas had to be exported to avail of further imports of the metal. The restriction was aimed at curbing the widening current account deficit.
A government official last month said more than 20 per cent of the imported metal could be exported, clearing the confusion that had held up inbound shipments at customs.
Sensex greets news with 266-point rise
Mumbai: The benchmark Sensex erased early losses and surged 266 points to close above the 20,000 mark for the first time in almost three weeks after the latest trade data indicated the government’s efforts to rein in the current account deficit are working.
Rupee surprises with 14p drop to 61.93 per $
Mumbai: Shrugging off the smart rise in local equities and sustained capital inflows, the Indian rupee on Wednesday depreciated by 14 paise to close at 61.93 against the Greenback following strong dollar overseas and fresh dollar demand from importers.