India's merchandise exports are expected to continue with double digit growth in August on account of improving demand in markets such as Africa and the Asean region.
"It is in double digits," commerce secretary SR Rao said when asked about exports growth in August. In July, exports registered a growth rate of 11.64%, the most in nearly two years. They soared to $25.83 billion. The August figures are expected this week. Rao had earlier said the measures announced by the government to boost exports, including a hike in the rate of interest subsidy, would help shipments to grow in the coming months. In May and June, the overseas shipments were in the negative zone.
India's economic growth fell to a decade's low of 5% in the 2012-13 fiscal. The current account deficit touched a historic high of 4.8% of GDP in 2012-13, mainly on account of import of gold and petroleum products. In April-July this fiscal, exports grew by 1.72% to $98.2 billion. Imports too increased by 2.82% to $160.7 billion during the period.
When asked whether the government is considering reducing export duty on iron ore, Rao said the commerce ministry has floated a Cabinet note on the matter.