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Export growth stagnant

Our Bureau

NEW DELHI, July 2

REFLECTING external factors such as the continued slowdown of the US economy, the country's exports during the first two months of the current fiscal posted a modest 5.10 per cent growth at $7238.07 million, against $6886.74 million in the corresponding months of 2000-01.

Provisional foreign trade data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S) show that while exports posted a moderate growth, imports continued to be sluggish registering a decline of 3.74 per cent during the per iod under review.

Imports during April-May 2001 are valued at $8432.58 million over the level of imports of $8760.58 million in April-May 2000. Consequently the country's trade deficit too during the period under review has come down from a level of $1873.84 million in Ap ril-May 2000 to $1194.51 million in April-May 2001.

Official sources told Business Line here that in the export basket, gems and jewellery and readymade garment exports continued to slide and the latter due to the abrupt changes announced in the duty drawback rates (a form of duty remission for imported i nputs) and the attendant uncertainty it caused to garment exporters for a few weeks. Though the revenue department has subsequently responded to the SoS of the garment exporters, the initial damage has been done, export chambers said.

On the import front, oil imports during April-May 2001 are valued at $2669.05 million which is 1.54 per cent higher than oil imports valued at $2628.59 million in the corresponding months of last year. Though this is in no way reflect any letup in consum ption, it might be partly due to the continued softening of crude prices during the period under review, officials said.

A matter of serious concern which got also reflected in the tepid industrial performance in the current fiscal is the persistent negative growth being registered by the non-oil imports. Such imports during April-May 2001 are estimated at $5763.53 million which is 6.01 per cent lower than the level of such imports valued at $6131.99 million in April-May 2000.

In rupee terms, while exports during April-May 2001 amounted to Rs 33913.29 crore, imports amounted to Rs 39511.60 crore, leaving an adverse trade balance of Rs 5598.31 crore. In the month of May, the latest one, exports are valued at $3736.68 million wh ich is 4.47 per cent higher than the level of $3576.80 million, while imports during May 2001 are estimated at $4466.77 million which is 2.45 per cent higher than the level of $4359.82 million in May, 2000.