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Exports growth dips to 19 pc
The deceleration was starkly visible in rupee terms, where export growth fell to a measly 4.31 per cent in August, reports Gaurav Choudhury.
Exports grew by 18.91 per cent in August this year, a sharp drop from the blistering 41.14 per cent in the same period last year, confirming fears about a severe erosion of earnings in wake of an appreciating rupee.
The deceleration was starkly visible in rupee terms, where export growth fell to a measly 4.31 per cent in August, from a scorching 50.57 per cent last year.
Exports were valued at $12.7 billion during the month. During the five-month April to August period exports grew by 18.36 per cent over last year's corresponding period, valued at $59.5 billion.
There was also a rising trend in imports, which grew by 32.64 per cent and was valued at $19.6 billion. Trade data released by the government on Monday showed that rise in imports was primarily due to an increase in import of non-oil items that grew by nearly 40 per cent in August.
The rise in imports has widened the trade deficit during April-August to $32.5 billion, compared with $19.9 billion last year.
Exporters have expressed serious concern about the erosion in earnings. Federation of Indian Export Organisations (FIEO) president Ganesh K Gupta said about 80 lakh people could end up losing their jobs if the trend continues.
"Nearly 40 lakh people have already lost their jobs. If the government does not intervene the number could increase to 80 lakh by March next," Gupta said.
Commerce and Industry Minister Kamal Nath ruled out any active intervention by the government in the foreign exchange market to calibrate rupee movements, but said it would help exporters tide over the crisis by increasing refunds of both state and central taxes.
'We do not calibrate the rupee but our government will meet different export promotion councils in the next two-three days and see how we can refund some of the state level and central taxes to exporters," Nath told reporters at a Chemical and Allied Products Export Promotion Council function in New Delhi.
