India’s exports recorded a double digit growth of 10.29 per cent after a gap of three months to $23.81 billion in August, mainly on account of rise in shipments of chemicals, petroleum and engineering products, Government data showed on Friday. Imports too rose by 21.02 per cent to $35.46 billion in August from $29.3 billion in the year-ago month, according to the data released by the commerce ministry.
Trade deficit widened to $11.64 billion in the month under review from $7.7 billion in August 2016, due to increase in gold imports that rose by about 69 per cent to $1.88 billion last month. In April 2017, exports rose by 19.77 per cent. Oil and non-oil imports grew by 14.22 per cent and 23 per cent to $7.75 billion and $27.7 billion, respectively in August.
Cumulative exports during April-August2017-18 increased by 8.57 per cent to $118.57 billion, while imports grew by 26.63 per cent to $181.71 billion, leaving a trade deficit of $63.14 billion. “In continuation with the positive growth exhibited by exports for the last twelve months, exports during August have shown growth of 10.29 per cent in dollar terms,” the ministry said. Commenting on the data, Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said while the August figures are encouraging, “I am worried about future growth as order booking position from October onwards is not good in view of increasing global uncertainties, rupee volatility and challenges at the domestic front.”
“Exporters have stopped taking orders with least or no working capital at their disposal due to blockage of funds under GST (Goods and Services Tax) and uncertainties looming large on refunds for the months of July to October 2017,” he added.
In August, petroleum, engineering and chemicals exports grew by 36.56 per cent, 19.53 per cent and 32.41 per cent, respectively during the last month. However, sectors which recorded negative growth includes handicrafts, gems and jewellery and fruits and vegetables.