Exports are expected to continue with double digit growth in August on account of improving demand in markets such as Africa and the Asean region.“It is in double digits,” Commerce Secretary S R Rao said when asked about exports growth in the month of August.
In July, exports registered a growth rate of 11.64 per cent, the most in nearly two years. They soared to $25.83 billion. The August figures are expected this week.
Rao had earlier said that the measures announced by the government to boost exports, including a hike in the rate of interest subsidy, would help shipments to grow in the coming months. In May and June, the overseas shipments were in the negative zone.
India’s economic growth fell to a decade’s low of 5 per cent in the 2012-13 fiscal. The Current Account Deficit touched a historic high of 4.8 per cent of GDP in 2012-13, mainly on account of import of gold and petroleum products.
During April-July this fiscal, exports grew by 1.72 per cent to $ 98.2 billion. Imports too increased by 2.82 per cent to $160.7 billion during the period.
When asked whether government is considering reducing export duty on iron ore, Rao said that the Commerce Ministry has floated a Cabinet note on the matter.
“A (draft) Cabinet note has already been floated because multiple ministries are involved in it,” he said on the sidelines of an IIFT function.
He said the ministries of steel, mines and commerce are involved in the issue.The export duty on iron ore fines stands at 30 per cent. The Mines Ministry is in favour of reduction in the duty, while the Steel Ministry is opposed to the idea.
Exports of iron ore fell from a high of 117.4 million tonnes in 2009-2010 to 18 million tonnes in 2012-2013.On the issue of restricting imports of non-essential goods, Rao said the exercise is on to identify those products.
He said the government has already put curbs on imports of gold, silver and platinum as it would not hurt exports.