Sunday 24 June 2012

Indian Exports grow 21 percent, yet highest ever trade deficit



 



        The Indian exports grew 21 percent and also marginally crossed the exports target at USD 303.7 billion in 2011-12 over the previous fiscal.



         Imports shot up by 32.1 percent to USD 488.6 billion, leaving highest ever trade deficit of USD 184.9 billion, according to the latest data released by the Commerce Ministry.

         During March, exports fell 5.71 percent to USD 28.68 billion, while imports grow by 24.2 percent at USD 42.58 billion leaving a trade gap of USD 13.9 billion.

        Oil and non-oil imports during the month increased by 32.45 percent and 19.91 percent to USD 15.83 billion and USD 26.75 billion respectively.

         During the entire 2011-12, Oil and non-oil imports grew by whooping 46.88 percent and 26.23 percent to USD 155.63 billion and USD 263.80 billion respectively.

          According to the Commerce Secretary Rahul Khullar, the widening trade deficit is posing a serious challenge for the economy. So it is now a serious area of concern. Government needs to think about it to fight back with this challenge.

          The government had set export target of USD 300 billion for 2011-12. Though it is achieved but still there is big reason to worry as the trade deficit is climbing up regularly. Let’s see how our government reacts on it.

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