Exports grow by 4.25 pc in Feb to $26.2 bn

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SME Times News Bureau | 11 Mar, 2013
Country's exports increased by 4.25 percent to USD 26.26 billion in February, registering positive growth for the second straight month, on the back of revival of demands in Europe, government data showed Monday.

Trade deficit narrowed to USD 14.9 billion in February as compared to USD 20 billion the previous month.

Exports has increased year-on-year just for the third time in the first 11 months of the current financial year. Exports had increased marginally by 0.82 percent at USD 25.58 billion in January, after contracting in the previous eight months in a row.

Cumulative value of exports in April-February period of 2012-13 has dropped by 4 percent at USD 265.95 billion, Commerce Secretary S.R. Rao told reporters here.

India's imports in February increased by 2.6 percent to USD 41.18 billion, leaving the monthly trade deficit of USD 14.9 billion.

Cumulative value of imports for the period April-February was USD 448.03 billion, as compared to USD 446.93 billion during the same period of previous year, registering a marginal increase of 0.25 percent.

Rao said revival in exports and low increase in imports have helped bring down the trade gap.

"The good news is that the trade deficit is coming down," the commerce secretary said.

The trade deficit had widened to USD 20 billion in January, the second highest ever monthly trade gap. The highest ever trade deficit of USD 20.9 billion in October last year.

For April-February period trade deficit has widened to USD 182.09 billion, sharply higher from the USD 169.81 billion recorded during the same period last year.

Rao said demands for Indian goods have improved in Europe and some other parts of the world showing a sign of recovery in the global demands.

"Sectors which have large weightage especially engineering has started performing better and refined oil too. There is also a marginal improvement in textiles exports," he said.

Reacting on the trade data announced for the month of February 2013, Chairman AEPC, Dr. A Sakthivel said, "Positive exports data from the last two months shows that gradually economy is showing positive sign. To keep the momentum going it is important that Government keeps availability of credit to industry at lower rate."

"Separate chapter for exports can be game changers in this regard. The recent increase in cotton and yarn prices have put additional burden on the garment sector therefore, I have requested Government to allow duty free import of yarn, as they have allowed for import of cotton for the yarn manufacturers," he added.

Sakthivel also said, "Our two major exports destination has still not recovered. India's apparel exports to EU and USA has recorded a shortfall by 14% and 2% respectively. However, exports to non- traditional market have risen in year 2012, due to the supportive policy announced in FTP by Shri Anand Sharma."