July exports grow 18.5%

NEW DELHI: The country’s export growth may be on a recovery path after being dented badly by the rupee appreciation. Exports grew 18.52% in July 2007 compared to 14.05% in June, clocking a marginal improvement. It is, however, significantly lower than 40.67% registered in July 2006. In rupee terms, exports managed an improvement of only 3.10%.

The rupee has risen nearly 10% since late 2006, impacting revenue and profitability of export-oriented sectors such as IT and textiles.

Exports in July 2007 increased to $12.49 billion from $10.54 billion in the same month last year. Imports grew 20.40% to $17.50 billion in July 2007 against $14.54 billion year ago. In rupee terms, imports were up 4.74 %, according to the official trade data released on Monday.

Trade deficit widened to $5.14 billion from $4 billion on the back of higher imports.“Export growth of over 18% shows resilience of our exporters who are able to compete in the world market against all odds,” commerce minister Kamal Nath said. Mr Nath expressed confidence that despite a slow down, the export target of $160 billion for this fiscal would be met.

July usually shows higher numbers on back of advance Christmas sourcing by retail chains in Europe and the US.During April-July, exports were up 18.22% to $46.79 billion from $39.58 billion in the corresponding period previous year. Imports for April-July increased 30.65% to $72.41 billion from $55.42 billion. Trade deficit widened to $25.61 billion in four months under review compared to $15.84 billion in the same period last fiscal.

Non-oil imports increased at a much faster pace of $25.86 million to $12.46 billion in July, than oil imports of $5.04 billion, which grew 8.75%. For the cumulative period of four months, the non-oil imports saw a huge jump of 43.73% to $52.53 billion against an increase of only 5.33% in oil imports for the period.