14.4.12

FY12 trade snippets

India’s exports have managed to cross the $300 billion target set for 2011-12, despite the global economic slowdown and largely due to inroads into new markets. Experts have cautioned that exports will face a headwind in the current fiscal as the key markets for shipments such as the US and Europe still remain sluggish. The sectors that posted robust growth including engineering, gems and jewellery, textiles, chemicals and pharmaceuticals. Imports during 2011-12 stood at $485 billion, largely due to high global oil prices. Oil imports totalled $150 billion, while gold and silver imports stood at $60 billion in 2011-12. Commerce secretary Rahul Khullar said the numbers were provisional and the final data would be released later in the month. The trade deficit widened to $185 billion from the previously estimated $160-$170 billion. Exports posted robust numbers until July but the data had to be re-worked due to a software glitch and in recent months shipments have remained patchy, while imports have increased — mainly that of crude oil and gold. The government has taken steps to moderate gold imports by raising duties. Global trade expanded in 2011 by 5%, a sharp deceleration from the rebound of 13.8% in 2010, and growth will slow further still to 3.7% in 2012, WTO economists have cautioned. They attributed the slowdown to the global economy losing momentum due to a number of shocks, including the European sovereign debt crisis.

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