Exports in November fall 4.17%; incentives to be announced by week-end
he government is all set to announce the next tranche of export incentives by this week-end as exports tumbled for the seventh straight month in Nov.
Imports during the month increased by 6.35% to $ 41.5 billion pushing the trade deficit to $ 19.28 billion painting a grim situation for the months ahead. “It (incentive package) will come hopefully by the end of the week. We are waiting for final confirmation from ministry of finance. We are trying to look at how to give fillip to sectors that contribute most to export performance,” commerce secretary S R Rao said at a press conference on Tuesday.
The first tranche of export incentives this fiscal was announced in June 2012 but failed to pull exports out of the red zone by November as predicted by commerce & industry minister Anand Sharma.
Oil imports during November 2012 increased sharply by 16.77% to $ 14.52 billion while non-oil imports increased by 1.5% to $26.66 billion. The trade deficit was a high $19.28 billion causing worry among policy makers.
The financial crisis in Europe and weak demand from the Asian countries including the Asean was largely responsible for the decline in exports during November. “There has been a 13% drop in exports to our traditional partners like Europe, North East Asia, Asia and South Asia in November 2012 compared to November 2011,” director general of foreign trade Anup Pujari said.
The share of these markets in India’s trade basket fell to 44% in November 2012 from 50.3% in November 2011.
Exports to the US, Latin America, North Africa and West Asia have, however, increased 20% during the month with its share in total exports growth to 48% from 40%.
Exports during April-November 2012-13 fell 5.95% to $201.18 billion, while imports fell 1.58% to $ 318.7 billion. Trade defict during the eight months was at 129.5 billion compared to $122.63 billion.