Country's exports grew by 2.73 per cent to $ 28.9 billion, but trade deficit more than doubled to $14.2 billion in the month due to a surge in gold imports. Trade deficit in September, 2013 was $ 6.12 billion.
Gold imports in the month under review increased manifold to $ 3.75 billion compared to $682.5 million in same month last year. Overall imports jumped by about 26 per cent to $ 43.15 billion. During April-September period, exports registered a growth of 6.47 per cent to $ 163.7 billion. Imports during the period grew by 1.57 per cent to $ 234 billion, leaving a trade deficit of $ 70.39 billion in the first half of the current fiscal.
India's export growth had slipped by 2.35 per cent at $26.95 billion in August M Rafeeque Ahmed, President, FIEO said “the decline in exports is disappointing, the same is primarily due to global factors.” He said that “uncertainty over continuation of interest subvention and new Foreign Trade Policy should be removed as exporters are in dilemma in doing their costing while contracting for new orders.”
Non-oil imports during September 2014 were estimated at $ 28.653 billion which was 36.2 per cent higher than non-oil imports of $ 21.045 billion in September 2013. Non-oil imports during April-September 2014-15 were valued at $ 151.623 billion which was 0.8 per cent higher than the level of such imports valued at $ 150.467 billion in April-September 2013-14. EEPC India Chairman Anupam Shah “the global slowdown is also reflected in the poor overall export growth of just 2.73 per cent in September. This is also reflected in falling crude oil prices in the backdrop of falling demand.”
The trade deficit for April-September 2014-15 was estimated at $ 70.399 billion which was lower than the deficit of $ 76.724 billion during April-September 2013-14. However, the trade deficit for the month of September 2014 stood at $ 14.247 billion which was 132.71 per cent higher than the value of $ 6.122billion in September 2013.
This phenomenal increase in trade deficit is mainly due to rise in imports without adequate rise in exports. Imports have increased mainly due to unusual growth of 449.7 per cent in imports of gold and 105.6 per cent in imports of metalliferous ores & other minerals over the same period last year. Both these items have a high value in the import basket with gold having a value of $ 3.752 billion and metalliferous ores & other minerals having a value of $ 817.79 million in September 2014.vices for August 2014 was estimated at $ 5.475 billion, it added.