Exports for the month of August though grew by over 44 per cent year-on-year, a month-on-month analysis shows that the outbound shipments actually declined by 17 per cent during the month.
During the month, exports stood at $24.3 billion following robust growth of engineering goods, electronics, cotton yarn and petroleum and oil products. However, commerce secretary Rahul Khullar cautioned that there are “difficulties down the road”, and made a case for stimulus to exporters.
The outbound shipment during the first five months stood at 134.5 billion, up 54.2 per cent as compared to the same period a year ago.
However, a month-on-month comparison shows that after growing in the first month, the exports have been on a decline, Khullar said. When compared with April, May exports registered a growth of 15.9 per cent month-on-month, but the growth in June was at a slower pace of 5.4 per cent and there was no growth in exports in July.
“Until now, we had a good run but we are looking at the difficulties down the road,”
the commerce secretary said, advising the finance ministry for a package for exporters well in time. As the overall confidence is waning due to deteriorating growth prospects in the US and Europe after June, “If you want to prevent them, then you better kick in now,” he said.
According to the data, imports is fast catching up with exports, ballooning the trade deficit to $14.1 billion in August alone. Imports grew by $38.4 per cent during August, up 41.8 per cent. During the first five months of the fiscal, imports stood at $189.4 per cent, up 40.3 per cent as compared to the last year.