And Growing Trade Deficit
Rama Krishna Vadlamudi, HYDERABAD 14 October 2011
India’s exports and imports growth rates are decelerating as per the latest figures announced for month of September 2011.
India’s export growth has slowed down compared to the high growth witnessed in the previous months. The figures for September 2011 areout with exports growing at 36 per cent to $ 24.8 billion and importsrecording a growth of 17 per cent to $ 34.6 billion. The export growthis being led by engineering goods, petroleum products, manmade yarn and readymade garments. On the other hand, the import growthis mainly due to higher demand for gold & silver, petroleum products,machinery and electronics.During April-September 2011, exports touched $ 160 billion, a growthrate of 52 per cent over the corresponding period of last year. Whereas, imports reached $ 234 billion during the same six-monthperiod, registering a growth of 32 per cent – with the trade deficit widening to $ 74 billion.
Trend of the Exports in the Last Six Years
Composition of Exports:
Composition % Composition % % change2010-11 2004-05Engineering goods 23.8 18.4 5.4Petroleum products 16.7 8.5 8.2Gems & Jewellery 14.5 16.7-2.2Chemicals 9.5 12.4-2.9Textiles 8.9 16.0-7.1
The shares of engineering goods and petroleum products are growingin the exports basket, while that of textiles, chemicals and gems & jewellery are declining from 2004-5 onwards as can be seen from thetable above.