Exports grow 21% to $303.7 b; Trade deficit hits a new high

Vishwanath Kulkarni
http://www.thehindubusinessline.com/industry-and-economy/economy/article3373461.ece?homepage=true

New Delhi, May 1: 

India’s exports for financial year 2011-12 grew 21 per cent in dollar terms to $303.7 billion against $251.1 billion in the previous year.

However, imports grew 32.15 per cent to $488.6 billion on rising oil and non-oil imports, resulting in a widening trade deficit of $184.9 billion. The trade deficit during 2011-12 grew 56 per cent over previous year’s $118.6 billion.

Exports during March 2012 were 6 per cent lower at $28.6 billion from $30.4 billion in the corresponding period last year, according to the Commerce Ministry data. Imports grew 24 per cent to $42.5 billion ($34.2 billion).

Oil, non-oil imports

Oil imports in March soared 32.45 per cent to $15.83 billion against $11.95 billion in the corresponding month last year. For 2011-12, the oil imports were up 47 per cent at $155.63 billion ($105.9 billion).

Non-oil imports in March also went up by 20 per cent to $26.7 billion. For fiscal 2011-12, the non-oil imports grew 26 per cent to $333 billion.

Trade deficit

“The growing trade deficit of $184.9 billion, which is highest in the history of India’s trade is a cause for concern,” said Mr M. Rafeeque Ahmed, President, Federation of Indian Export Organisation (FIEO).

However, looking at the profile of imports, very little manoeuvring is possible since increasing trade deficit is on account of large imports of petroleum, gold, silver and coal besides machinery inputs, Mr Ahmed said in a statement.