June exports dip 4.56 pc; exporters seek support

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SME Times News Bureau | 13 Jul, 2013
Country's exports declined 4.56 percent to USD 23.78 billion in June and imports contracted due to the government's curb on gold and silver purchases, helping in lowering the trade deficit, government data showed Friday. Meanwhile, the apex exporters' body stressed the need to make manufacturing competitive to support exports.

The country's total merchandise imports were valued at USD 36.03 billion in June as compared to USD 36.16 recorded during the same month last year, registered a decline of 0.37 percent, according to data released by the commerce ministry in New Delhi.

The contraction in imports has helped in bringing down the trade deficit from a seven month high of USD 20.14 billion registered in May.

Trade deficit narrowed to USD 12.25 billion in June.

Addressing a media briefing here, Director General of Foreign Trade Anup Pujari said the overall imports declined in June largely due to a sharp drop in the imports gold and silver.

"Decline in gold and silver imports could be attributed to the steps taken by the government and the Reserve Bank of India (RBI)," Pujari said.

Value of imports of gold and silver dipped to USD 2.45 billion in June from USD 8.4 billion in the previous month.

Oil imports in June were valued at USD 12.76 billion, 13.74 percent higher than the oil imports bill of USD 11.22 billion in the same month in 2012.

Non-oil imports dropped by 6.71 percent to USD 23.26 billion during the month under review.

For the first three months of the current financial year, total trade deficit rose to USD 50.18 billion as compared to USD 42.21 billion recorded during the same period last year.

Federation of Indian Export Organisations (FIEO) President M. Rafeeque Ahmed said weak global demands were putting pressure on India's foreign trade.

"While it is disappointing, we should not undermine the global trend as many countries pursuing export-led growth are also exhibiting declining exports. China has also posted a negative growth of 3 percent in exports in June," Ahmed said.

However, Ahmed stressed the need to make manufacturing competitive to support exports.

"There is strong linkage in manufacturing growth and exports. Efforts to augment Manufacturing is the need of the hour to address rising trade deficit also which has touched USD 50 Billion in April- June quarter," added FIEO Chief.

The cumulative value of exports for the April-June period was USD 72.45 billion as compared to USD 73.49 billion recorded during the same period last year, registering a decline of 1.41 percent year-on-year.