Exports reach $242.80 bn in 10 months of FY12

Target of $300 bn this financial year within reach

Total merchandise exports in the first 10 months of the financial year through January reached $242.80 billion, triggering hopes of meeting the government’s target of $300 billion for the whole year. On the other hand, cumulative imports stood at $391.45 billion, widening the trade deficit to $148.67 billion, the government said on Thursday.

In January, exports rose by 10.10 per cent to reach $25.34 billion, compared to $23.02 billion in the same month last financial year, while imports topped $40.10 billion, up 20.25 per cent from $33.35 billion in 2010-2011, according to data released by the ministry of commerce and industry. In November and December, the exports growth had fallen to single digits year-on-year.

This is for the second time that exports have registered a month-on-month increase, since it started falling July onwards due to a weak demand in Europe and US markets. Last month, while releasing the initial estimates, Commerce Secretary Rahul Khullar had said exports would now continue to rise with the effect of rupee’s depreciation kicking in, the bulk of which happened in November last year.

Moody’s Analytics said export cooled through the final quarter of 2011, though rebounded a little in January, helped by the cheaper rupee. “Imports continue to grow solidly, mirroring the Indian economy that is still growing at a decent clip, while the global economy struggles,” it said in a note.

In January, crude oil imports surged by 26.78 per cent at $123.25 billion, as against $9.72 billion in the same month last year. All the same, total crude oil import during April-January reached $117.91 billion — up 38.33 per cent from $84.93 billion in the corresponding period of 2010-2011. Rising crude oil prices due to Iran-US stand-off could have some adverse impact in the remaining two months. Non-oil imports in January reached $27.78 billion, which was 17.56 per cent higher than non-oil imports of $23.63 billion in January 2011. Total non-oil imports so far stood at $273.54 billion rising by 25.71 per cent from $217.60 billion in the last financial year.