FE Editorial : CADs and other worries
While the government remains focused on gold imports being the problem, the fact of the matter is that gold imports are falling, from $41.7 billion in April-December FY12 to $37.8 billion in the same period in FY13. As a proportion of the trade deficit, gold imports were 26% in FY11 and rose to 30.5% in FY12 and then fell to 20.2% in April-December FY13. The real issue remains the sharp fall in exports, by 4.9% in April-January FY13 as compared to a 21.3% growth in FY12. The good news here is that, after 8 months of contraction, exports picked up marginally in January. Whether this sustains remains to be seen, but it could given that global exports growth is picking up—from 5.9% in 2011, global trade growth collapsed to
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