December exports dip 2%; trade deficit widens to $17.6 billion
12 Jan 2013 6:59 AM IST
Declining for the eighth month in row, exports contracted by 1.92 per cent in December 2012 to $24.8 billion, widening the country's trade deficit to $ 17.6 billion in the same month.
Exports in December 2011 stood at $25.3 billion.
The decline, however, is lower compared to November last year when the shipments had declined by 4.17 per cent, raising hopes of further improvement during the last quarter of the fiscal.
Imports, on the other hand, grew by 6.26 per cent to $ 42.5 billion in December, 2012.
During the April-December this fiscal, shipments have shrunk by 5.5 per cent to $ 214.1 billion compared to the same period last year. The contraction is slightly lower compared to about 6 per cent in the April-November period.
Commerce Secretary S R Rao said that the fall in exports have been slightly arrested and 'with a new set of incentives, which we got into force from 1 January, we expect that in the current quarter (January-March 2013), there will be a further improvement in the export performance'.
He said the world trade has not performed well in 2012 and the year was the 'worst' in terms of global trade.
'If we look at the WTO forecast for 2012, initially they forecast that the world trade will grow by 3.9 per cent but that has been scaled down thrice and it ended with 2.5 per cent. The 2012 rate of growth in the world trade has been less than half of past 20 year average,' he said.
Reacting to fall in exports, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the government should take some steps in the Budget to boost shipments.
Imports in the first nine months of this financial year dipped by 0.71 per cent to $ 361.2 billion.
Trade deficit during the period stands at $ 147.2 billion up from $ 137.3 billion in the same period previous year. Oil imports in December increased by 23.5 per cent year-on-year to $ 14.4 billion.
Non-oil imports, however, declined by 0.87 per cent to $ 28.11 billion.
During April-December 2012, oil imports grew by 12.18 per cent to $ 124.5 billion. However, non-oil imports during the period dipped by 6.37 per cent to $ 236.75 billion.
Rao added that for 2013 also, the WTO has estimated a growth rate of 4.5 per cent which is again a scale down version of 5.2 per cent projected earlier.
When asked if the government is considering hiking import duty on gold, Rao said, 'we are in consultations' with the finance minsitry.
However, he said 'one good news is that the US has overcome from the fiscal cliff and we hope that the US economy stablises'. The US and Europe accounts for about one-third of the country's exports, which was $ 307 billion in 2011-12. The Secretary said the strategy of market diversification has helped exporters.
'Fall in exports have been substantially cushioned because of diversification in Africa, Asean, far-east and Latin America. There is a need to redouble our efforts here,' he said adding 'rupee has appreciated to Rs 55 which is a good news for us'.
On export target of $ 360 billion, he said it is difficult to achieve. Exporters body FIEO expects that exports may touch $ 300 billion by end of 2012-13.
Out of the top five items that India exports only pharmaceuticals recorded a positive growth of 10.7 per cent during April-December period. Engineering exports declined by 4.4 per cent, petroleum products by 4.1 per cent, gems and jewellery by 10.6 per cent and textiles by 8.4 per cent.
Similarly, out of the top five import items, only crude oil recorded growth of 12.18 per cent to $ 125 billion. Rest registered negative growth — gold and silver (-15 per cent), machinery (-5 per cent), electronics (- 9 per cent) and pearls, semi-precious and precious stones (-36 per cent). Gold and silver import stood at $ 39 billion as against $ 46 billion in April-December 2011.
INDUSTRIAL OUTPUT CONTRACTS BY 0.1% IN NOVEMBER
Dashing hopes of a rebound, the industrial output contracted to a four-month low of 0.1 per cent in November due to poor performance of manufacturing and mining sectors and decline in production of capital goods. The industrial output, as measured by the Index of Industrial Production (IIP) dipped from a robust 8.3 per cent in October. The decline may prompt the Reserve Bank to consider rate cut in its quarterly review on 29 January to boost growth.
The industrial output had grown by 6 per cent in November 2011. Meanwhile, in July 2012 it showed a contraction of 0.1 per cent. Factory output growth was 1 per cent in April-November period this fiscal, down from 3.8 per cent in the same period in 2011-12, according to official data released here today. Meanwhile, the growth in the industrial production during October last year was revised upward to 8.3 per cent, from earlier provisional estimates of 8.2 per cent released last month -- highest in previous 16 month.
The manufacturing sector, which constitutes over 75 per cent of the index, grew by meagre 0.3 per cent in November in 2012, as against a 6.6 per cent in 2011. The output of the key sector remained low at one per cent in April-November last year as against 4.2 per cent growth in the same period in 2011.
The mining output in November contracted by 5.5 per cent compared to a decline in production by 3.5 per cent in same month in 2011. The sector’s production in April-November also declined by 1.5 per cent, against a contraction of 2.4 per cent in the year-ago period. Capital goods output declined by 7.7 per cent in November, as against a contraction of 4.7 per cent in same month in 2011. The output of capital goods also contracted in the April-November period by 11.1 per cent, as against a dip in production by 0.1 per cent in the 2011-12 period.
Exports in December 2011 stood at $25.3 billion.
The decline, however, is lower compared to November last year when the shipments had declined by 4.17 per cent, raising hopes of further improvement during the last quarter of the fiscal.
Imports, on the other hand, grew by 6.26 per cent to $ 42.5 billion in December, 2012.
During the April-December this fiscal, shipments have shrunk by 5.5 per cent to $ 214.1 billion compared to the same period last year. The contraction is slightly lower compared to about 6 per cent in the April-November period.
Commerce Secretary S R Rao said that the fall in exports have been slightly arrested and 'with a new set of incentives, which we got into force from 1 January, we expect that in the current quarter (January-March 2013), there will be a further improvement in the export performance'.
He said the world trade has not performed well in 2012 and the year was the 'worst' in terms of global trade.
'If we look at the WTO forecast for 2012, initially they forecast that the world trade will grow by 3.9 per cent but that has been scaled down thrice and it ended with 2.5 per cent. The 2012 rate of growth in the world trade has been less than half of past 20 year average,' he said.
Reacting to fall in exports, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the government should take some steps in the Budget to boost shipments.
Imports in the first nine months of this financial year dipped by 0.71 per cent to $ 361.2 billion.
Trade deficit during the period stands at $ 147.2 billion up from $ 137.3 billion in the same period previous year. Oil imports in December increased by 23.5 per cent year-on-year to $ 14.4 billion.
Non-oil imports, however, declined by 0.87 per cent to $ 28.11 billion.
During April-December 2012, oil imports grew by 12.18 per cent to $ 124.5 billion. However, non-oil imports during the period dipped by 6.37 per cent to $ 236.75 billion.
Rao added that for 2013 also, the WTO has estimated a growth rate of 4.5 per cent which is again a scale down version of 5.2 per cent projected earlier.
When asked if the government is considering hiking import duty on gold, Rao said, 'we are in consultations' with the finance minsitry.
However, he said 'one good news is that the US has overcome from the fiscal cliff and we hope that the US economy stablises'. The US and Europe accounts for about one-third of the country's exports, which was $ 307 billion in 2011-12. The Secretary said the strategy of market diversification has helped exporters.
'Fall in exports have been substantially cushioned because of diversification in Africa, Asean, far-east and Latin America. There is a need to redouble our efforts here,' he said adding 'rupee has appreciated to Rs 55 which is a good news for us'.
On export target of $ 360 billion, he said it is difficult to achieve. Exporters body FIEO expects that exports may touch $ 300 billion by end of 2012-13.
Out of the top five items that India exports only pharmaceuticals recorded a positive growth of 10.7 per cent during April-December period. Engineering exports declined by 4.4 per cent, petroleum products by 4.1 per cent, gems and jewellery by 10.6 per cent and textiles by 8.4 per cent.
Similarly, out of the top five import items, only crude oil recorded growth of 12.18 per cent to $ 125 billion. Rest registered negative growth — gold and silver (-15 per cent), machinery (-5 per cent), electronics (- 9 per cent) and pearls, semi-precious and precious stones (-36 per cent). Gold and silver import stood at $ 39 billion as against $ 46 billion in April-December 2011.
INDUSTRIAL OUTPUT CONTRACTS BY 0.1% IN NOVEMBER
Dashing hopes of a rebound, the industrial output contracted to a four-month low of 0.1 per cent in November due to poor performance of manufacturing and mining sectors and decline in production of capital goods. The industrial output, as measured by the Index of Industrial Production (IIP) dipped from a robust 8.3 per cent in October. The decline may prompt the Reserve Bank to consider rate cut in its quarterly review on 29 January to boost growth.
The industrial output had grown by 6 per cent in November 2011. Meanwhile, in July 2012 it showed a contraction of 0.1 per cent. Factory output growth was 1 per cent in April-November period this fiscal, down from 3.8 per cent in the same period in 2011-12, according to official data released here today. Meanwhile, the growth in the industrial production during October last year was revised upward to 8.3 per cent, from earlier provisional estimates of 8.2 per cent released last month -- highest in previous 16 month.
The manufacturing sector, which constitutes over 75 per cent of the index, grew by meagre 0.3 per cent in November in 2012, as against a 6.6 per cent in 2011. The output of the key sector remained low at one per cent in April-November last year as against 4.2 per cent growth in the same period in 2011.
The mining output in November contracted by 5.5 per cent compared to a decline in production by 3.5 per cent in same month in 2011. The sector’s production in April-November also declined by 1.5 per cent, against a contraction of 2.4 per cent in the year-ago period. Capital goods output declined by 7.7 per cent in November, as against a contraction of 4.7 per cent in same month in 2011. The output of capital goods also contracted in the April-November period by 11.1 per cent, as against a dip in production by 0.1 per cent in the 2011-12 period.
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