Goods exports rose for the twelfth
consecutive month with shipments in July registering a 3.94% year-on-year
growth to $22.5 billion. However, this was the slowest pace of growth since
November 2016, when exports grew by 2.56%.Data released on Monday by the
commerce ministry showed that major commodity groups of export showing positive
growth in the month included engineering goods (15.16%), petroleum products
(20.27%), organic and inorganic chemicals (20.67%), cotton yarn/fabrics and
made-ups and handloom products (5.39%) and marine products (30.53%).
Non-petroleum and non-gems and jewellery exports in July increased 6.93% to
$22.5 billion. Meanwhile, goods imports in July recorded 15.42% to $33.99
billion — the slowest pace since 1.13% growth in January 2017.
This led to trade deficit (goods) narrowing
on a month-on-month basis to $11.45 billion, the lowest since $10.5 billion
recorded in the month of March 2017.T.S. Bhasin, chairman of the country’s apex
engineering exports body EEPC India, said, “growth in exports has certainly
slowed, with rising value of rupee (against the U.S. dollar) adversely
impacting the bottom line of exporters. “This is quite evident from the trade data that shows that while
exports for July grew by 3.94%, in rupee terms the growth has turned negative.”
In rupee terms, exports shrunk 0.32% in July to Rs. 1.45 lakh crore.
Mr. Bhasin added that, “while
engineering exports have still been growing at a respectable pace, it is due to
pick up in base metals. But, the rupee value is a cause of concern for
exporters.”Major commodity group of imports showing high growth in July were
petroleum products (15.02%), electronic goods (22.5%), machinery, electrical
and non-electrical (7.34%), pearls, precious and semi-precious stones (6.86%)
and gold (95.05%).Oil imports grew 15.02% in July to $7.84 billion, while
non-oil imports rose 15.55% to $26.14 billion. The commerce ministry said
global Brent prices rose 8.03% in July 2017 vis-à- vis July 2016 as per World
Bank commodity price data.
Source: The Hindu, India Thursday, 17 August 2017