India’s exports surge but deficit remains
India’s international trade continued to surge but the country is yet to effectively address its Balance of Payments deficit.
Official estimates for the fiscal year ending March 2011 released last week showed that the country’s trade deficit showed a marginal decline to reach about $US 104.82 billion from $US 109.62 billion recorded during the previous fiscal year.
But Director General of Foreign Trade Anup Pujari said that the actual trade deficit is likely to be between $US 115 billion and $US 125 billion.
India’s exports during March 2011 stood at $US 29.13 billion (`131,081.97 crores) which was 43.8% higher in US Dollar terms (42.2% higher in Rupee terms) than the level of $US 20.21 billion (` 92149.26 crores) during March 2010.
Cumulative value of exports for the period 2010-2011 was $US 245.86 billion (`111,8822.85 crores) as against $US 178.75 billion (`845,533.62 crores) registering a growth of 37.5% in US Dollar terms and 32.3% in Rupee terms over the same period last year.
The country’s imports during March 2011 were valued at $US 34.70 billion (`156,314.00 crores) representing a growth of 17.2% in US Dollar terms (15.9% in Rupee terms), compared to $US 29.68 billion (`134,791.91 crores) in March 2010. Cumulative value of imports for 2010-2011 was $US 350.97 billion (` 1,596,869.37 crores), compared to $US 288.87 billion, (`1,363,735.55 crores), accounting for 21.6% growth in US Dollar terms and 17.1% in Rupee terms over the same period last year.
Oil imports during March 2011 were valued at $US 94.38 billion 8.2% higher than the corresponding month in 2010 $US 87.21 billion.
Oil imports for the fiscal year 2010-2011 were valued at $US 101.2 billion, accounting for an increase of 16.7% higher compared to the previous year’s figure of $US 87.13 billion.
Non-oil imports during March 2011 were valued at $US 25.30 billion, up by 21% compared to the previous year’s non-oil imports of $US 20.9 billion.
Non-oil imports for the fiscal year ending 2011 were valued at $US 249.05 billion, accounting for an increase of 23.7% over the previous year’s figure of $US 201.9 billion.
Indian Government officials said that the country’s trade deficit may reach alarming and unsustainable limits, ballooning to more than $US 278 billion in three years.
“The deficit could widen to 12.8% of the Gross Domestic Product (GDP) by 2014 from the current level of 7.2%. This could compound the current account deficit problem,” they said.