Export Growth Decelerates To 12.9pc In May - July 2, 2008

After reporting a hefty growth of 31.5 per cent at $ 14.40 billion in April, the country''s exports displayed a distinct decelerate in momentum in the second month of the current fiscal, logging a growth of 12.9 per cent at $13.78 billion in May 2008. Cumulatively, exports during the first two months of the current fiscal at $28.18 billion were 21.7 per cent higher than $23.16 billion it recorded during April-May 2007. In rupee terms, exports during the first two months of the current fiscal at Rs 1,15,690 crore were 20.6 per cent higher than Rs 95,958 crore in the corresponding months of the previous fiscal, reflecting the gathering reduction of the rupee vis-a-vis the greenback in the current fiscal. Even as export growth displayed marked slowdown in the second month as compared to the initial month of the current fiscal, imports during May 2008 at $24.5 billion displayed a high growth of 27.1 per cent over the level of imports at $19.31 billion in May 2007. In April, 2008, import growth was 36.6 per cent at $ 24.27 billion against $17.76 billion in April 2007. In May, 2008, oil imports cost $8.4 billion against $5.6 billion in May 2007, reflecting the huge increase in global crude prices in recent months.

India May Miss Export Growth Target - June 16, 2008

India is likely to miss the export target of $200 billion for the current fiscal owing to slowdown in the US and European markets, restriction on shipments of many commodities and higher fuel prices, a survey by industry body FICCI said. The study said the rise in oil prices is likely to get reflected in exports as well as the higher fuel prices has led to a hike in ocean freight rates, prompting importers to source from closer production units.

Foreign buyers are showing preference to source from closer production points to save on the freight costs. If this trend gains momentum then domestic exporters would have to reorient their market strategies.The buyers in the US are considering increasingly sourcing from the markets of Canada, Mexico and other Latin American countries due to export restrictions in India.Indian has banned exports of pulses, edible oil and non-basmati rice, besides it has hiked export duty on long steel products to 15 per cent.

Slew Of Measures To Sustain Export Growth

Union Commerce and Industry Minister Kamal Nath on Friday announced various measures to check spiralling inflation, extended sops to exporters to sustain growth in the export sector and gave relief to sectors hit by rupee appreciation vis-a-vis dollar in the current fiscal. Releasing the annual supplement of the Foreign Trade Policy (FTP) here on Friday, Mr. Kamal Nath said: "To curb inflation on essential items, the Government has banned export of non-basmati rice, edible oils and pulses. Now we are banning export of cement too, while tax incentives and the promotional scheme on export of rice and primary steel items are being withdrawn."

Lauding exporters for their resilience and hard work in sustaining the growth momentum, Mr. Kamal Nath announced a slew of ''innovative steps'' that included extension of the ''Duty Entitlement Passbook'' (DEPB) scheme till May 2009; extension of the interest subvention scheme where exporters are given bank credit at a reduced rate of 6 per cent; reduction of customs duty payable under the ''Export Promotion Capital Goods'' (EPCG) scheme from 5 per cent to 3 per cent; and lowering of average export obligation under the EPCG scheme. "The Interest subvention scheme would mean an outgo of Rs. 1,050 crore from the Central Exchequer in the current year," he added.