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July exports shrink by 14.80% Y-O-Y; trade deficit shoots up to $15493.22 million

04 Sep 2012 Evaluate

Driven by the weak demand in traditional markets such as Europe and the US, India's export, which is largely consumed by these developed economies, slumped by 14.80% - steepest dive in three years-to $ 22442.96 million in July 2012, lower than the level of $ 26340.73 million (Rs. 116998.69 crore) during July, 2011. The cumulative value of exports in the first four months (April-July) of the current financial year stood at $ 97646.92, lower by 5.06% than the $102848.24 million recorded during the corresponding period of last year. India has set an export target of over $360 billion for the current fiscal 2012-13 after crossing the $300-billion mark last fiscal.

Imports into the country for the month under review stood at $37936.18 million, representing a negative growth of 7.61% (in Dollar terms) over the level of imports valued at $41059.75 million in July, 2011. While, cumulative value of imports for the period April-July, 2012-13 was $153195.59 million, as against $ 163801.20 million, registering a negative growth of 6.47% in dollar terms.

This notable decline in exports in July has resulted in ballooning up of the nation’s trade deficit to $15493.22 million for the month under review, as against $14719.02 million in same month previous year. However, a cumulative trade deficit in April-July period of the current fiscal was recorded lower at $55548.67 million, against the deficit of $ 60952.96 million registered in the like period of 2011-12.

Oil imports during July 2012 were valued at $ 12229.1 million, 5.52% lower than oil imports valued at $ 12943.0 million in the corresponding period last year. Oil imports during the first four months of the current fiscal were valued at $ 53814.1 million, 2.76% higher than the oil imports of $ 52368.0 million in the corresponding period last year.

Furthermore, Non-oil imports during July were estimated at $ 25707.1 million, 8.57% lower than non-oil imports of $28116.7 million in July 2011. Non-oil imports during April-July period were valued at $99381.5 million, 10.82% lower than the level of such imports valued at $ 111433.2 in April-July 2011.

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