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Export dip abates in Sept, but import decline intensifies.


Date: 04-11-2009
Subject: Export dip abates in Sept, but import decline intensifies
New Delhi, Nov. 3 Even as the the country’s export decline decelerated in September to 13.8 per cent in dollar terms, the decline in import growth has been increasing with the numbers for the month dropping a hefty 31.3 per cent.

According to provisional figures released by the Commerce Ministry here, the country’s imports during September 2009 at $21.37 billion were 31.3 per cent lower than the $31.1 billion in the corresponding month of 2008.

Exports, on the other hand, were down 13.8 per cent in September at $13.6 billion ($15.8 billion).

Cumulatively, both exports and imports continue to maintain a high negative growth of 28.5 per cent and 32.7 per cent respectively in dollar terms. Thus, exports during the first half of the current fiscal fetched $77.9 billion ($108.9 billion), while imports amounted to $124.6 billion ($185 billion).

Reacting to the trade performance of the current fiscal, the Federation of Indian Export Organisation (FIEO) President, Mr A. Saktivel, told Business Line here that the rupee rising against the US dollar should be used as a valid ground to give dollar credit to trade and industry so as to improve their access to export credit.

Drawback hike plea

He also sought an across-the-board hike in all-India duty drawback rates as exporters were working on wafer-thin margin in the competitive overseas markets when every other country was providing booster doses to retain market share.

The country’s trade deficit narrowed to $46.7 billion ($76 billion) during the first half of the current fiscal.

Giving details of import performance, the official release said oil imports during September at $6.3 billion were 33.5 per cent lower than $9.5 billion in September 2008. Cumulatively, oil imports during the first half of the current fiscal at $34.8 billion ($63.3 billion) were 45 per cent lower.

Non-oil imports in September at $15 billion ($21.6 billion) were 30.4 per cent lower and cumulatively they amounted to $89.8 billion ($121.7 billion) reflecting a negative performance of a 26.2 per cent. 

Source : Business Line

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