Exports growth in India slows to 7.33% in July; trade deficit 1-year high

Written by PTI | New Delhi | Updated: Aug 15 2014, 03:23am hrs
ExportsIndia's exports grew by 7.33 per cent to USD 27.72 billion in July. Reuters
Exports growth in India slipped to 7.33 per cent in July after witnessing a double-digit expansion in the previous two months, pushing up the trade deficit to one- year high of USD 12.22 billion.

Exports in July stood at USD 27.72 billion as compared to USD 25.83 billion in the same month last year. In June and May, growth was 10.22 per cent and 12.4 per cent respectively.

The sectors that put up a good show include textiles (13.3 per cent), petroleum products (28 per cent), engineering (23.9 per cent), leather (17.23 per cent), marine products (25 per cent), oil seeds (19.25 per cent), chemicals (16.67 per cent) and pharmaceuticals (10.78 per cent).

Imports increased by 4.25 per cent year-on-year to USD 39.95 billion in July. This is the second consecutive growth in the inbound shipments after remaining in the negative for the past several months.

Trade deficit of USD 12.22 billion is one-year high as as the previous high was USD 12.49 billion in July 2013.

According to exporters' body Fieo, gems and jewellery and electronics continue to be a cause of concern as their negative growth is pulling down overall exports growth. It wants the government to announce some major initiatives in the forthcoming Foreign Trade Policy to boost exports.

FIEO expressed hope that exports will cross USD 350 billion by end of the fiscal.

In the April-July period, exports grew by 8.62 per cent to USD 107.8 billion.

Imports, however, dipped by 3.8 per cent to USD 153.15 billion during the first four months of this financial year. Trade deficit during the period stood at USD 45.31 billion as against USD 59.91 billion in the same period last year.

Oil imports increased by 12.75 per cent in July to USD 14.35 billion. Non-oil imports during the month under review were up by 0.03 per cent to USD 25.6 billion.

Country's gold imports dipped by 26.39 per cent to USD 1.81 billion in July this year from USD 2.46 billion in the same month last year.