Exports up 4.25% in 2nd straight month of growth
13 March 2013 4:59 AM IST
Reflecting some recovery in the global markets, India's exports for in February grew by 4.25 per cent to $26.26 billion for the the second straight month.
With a view to boost exports, the government will announce incentives for exporters in the forthcoming foreign trade policy (FTP). Exports had entered positive zone after a gap of eight months, recording a 0.82 per cent growth in January.
'Europe is performing better now. The decline has been arrested. Sectors which have large weightage especially engineering has started performing better and refined oil too.There is also a marginal improvement in textiles exports,' Commerce Secretary S R Rao told reporters here.
Other sectors which performed well include rice, oil meals, pharmaceutical and chemicals.
Rao said the Ministry is intensely engaged with stakeholders for the forthcoming FTP, expected to be announced by end of this month.
'We are actively involved in consultations with chambers, export promotion councils, various departments and state governments and trying to arrive at a package of incentives which would be announced shortly,' he said.
Special economic zones (SEZ), which are export hubs of the country, may also get incentives along with the FTP.Imports rose by 2.6 per cent to $41.18 billion in February, leaving a trade deficit of $14.92 billion from $14.93 in February 2012. Last month trade deficit had widened to around $20 billion, the second highest figure ever in a month.
'We certainly expect that trade deficit to narrow as exports are picking up,' Rao said.However, during the April-February period, exports declined by 4 per cent to $265.95 billion. Imports during the 11-month period grew by a mere 0.25 per cent to $448 billion, leaving a trade deficit of $182.1 billion. Rice exports increased by 27.7 per cent year-on-year in April-February 2013. Engineering exports declined by a meagre 3 per cent to USD 51 billion during the period.
Crude oil imports during April-February 2013 grew by 11.9 per cent to USD 155 billion from USD 139 billion in the same period last year. In February, it grew by 15.45 per cent.
The sectors which registered high growth in imports during the 11-month period include cotton, vegetable oil, petroleum and ores and scraps.Gold and silver imports grew by 15.23 per cent in the 11-month period while the imports declined by 7.6 per cent to $52.4 billion in the month under review.
In the FTP, sectors which are expected to get sops include leather, engineering, carpet and textiles.SEZs, which contribute about 30 per cent in the country's overall exports, are losing sheen due to the imposition of Minimum Alternate Tax (MAT) and Dividend Distribution Tax.
WE’RE GOING ALL-OUT TO RAISE EXPORTS OF AGRO-GOODS: GOVT
Government on Monday said it is making all efforts to increase export of agricultural commodities, including wheat, rice, vegetables, meat and marine products, and India has emerged as the second highest exporter in this sector.
‘The picture being painted that there has been a fall in export of agricultural products is incorrect. Processed agricultural products, vegetables and fruits are being exported as part of India’s foreign trade policy,’ Commerce and Industry Minister Anand Sharma told the Lok Sabha during Question Hour.
He emphasised that government is giving a 5 per cent export incentive to this sector.
With a view to boost exports, the government will announce incentives for exporters in the forthcoming foreign trade policy (FTP). Exports had entered positive zone after a gap of eight months, recording a 0.82 per cent growth in January.
'Europe is performing better now. The decline has been arrested. Sectors which have large weightage especially engineering has started performing better and refined oil too.There is also a marginal improvement in textiles exports,' Commerce Secretary S R Rao told reporters here.
Other sectors which performed well include rice, oil meals, pharmaceutical and chemicals.
Rao said the Ministry is intensely engaged with stakeholders for the forthcoming FTP, expected to be announced by end of this month.
'We are actively involved in consultations with chambers, export promotion councils, various departments and state governments and trying to arrive at a package of incentives which would be announced shortly,' he said.
Special economic zones (SEZ), which are export hubs of the country, may also get incentives along with the FTP.Imports rose by 2.6 per cent to $41.18 billion in February, leaving a trade deficit of $14.92 billion from $14.93 in February 2012. Last month trade deficit had widened to around $20 billion, the second highest figure ever in a month.
'We certainly expect that trade deficit to narrow as exports are picking up,' Rao said.However, during the April-February period, exports declined by 4 per cent to $265.95 billion. Imports during the 11-month period grew by a mere 0.25 per cent to $448 billion, leaving a trade deficit of $182.1 billion. Rice exports increased by 27.7 per cent year-on-year in April-February 2013. Engineering exports declined by a meagre 3 per cent to USD 51 billion during the period.
Crude oil imports during April-February 2013 grew by 11.9 per cent to USD 155 billion from USD 139 billion in the same period last year. In February, it grew by 15.45 per cent.
The sectors which registered high growth in imports during the 11-month period include cotton, vegetable oil, petroleum and ores and scraps.Gold and silver imports grew by 15.23 per cent in the 11-month period while the imports declined by 7.6 per cent to $52.4 billion in the month under review.
In the FTP, sectors which are expected to get sops include leather, engineering, carpet and textiles.SEZs, which contribute about 30 per cent in the country's overall exports, are losing sheen due to the imposition of Minimum Alternate Tax (MAT) and Dividend Distribution Tax.
WE’RE GOING ALL-OUT TO RAISE EXPORTS OF AGRO-GOODS: GOVT
Government on Monday said it is making all efforts to increase export of agricultural commodities, including wheat, rice, vegetables, meat and marine products, and India has emerged as the second highest exporter in this sector.
‘The picture being painted that there has been a fall in export of agricultural products is incorrect. Processed agricultural products, vegetables and fruits are being exported as part of India’s foreign trade policy,’ Commerce and Industry Minister Anand Sharma told the Lok Sabha during Question Hour.
He emphasised that government is giving a 5 per cent export incentive to this sector.
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