S.R. Rao, Com­merce Sec­re­tary

Business Sphere - - DGFT was receiving the performance of exports -

will have an im­pact on In­dia’s trade”. Last time on June 5, the government had an­nounced a slew of mea­sures, in­clud­ing ex­ten­sion of 2 per cent in­ter­est sub­sidy by one year, as part of 7-point strat­egy to achieve 20 per cent in­crease in ex­ports in the cur­rent fis­cal. The government is also ex­pected to soon come out with new guide­lines to re­vamp Spe­cial Eco­nomic Zones (SEZ) and Ex­port Ori­ented Unit (EOU) schemes to fur­ther boost the ship­ments. To pro­vide im­pe­tus to overseas trade through courier and the In­ter­net, the government had ex­tended ex­port ben­e­fits to e-com­merce plat­forms on prod­ucts de­liv­ered out­side In­dia. Fur­ther, in or­der to pro­mote man­u­fac­tured ex­ports of green tech­nol­ogy prod­ucts, ex­port obli­ga­tion un­der EPCG scheme is be­ing re­duced to 75 per cent of the nor­mal ex­port obli­ga­tion for 16 iden­ti­fied prod­ucts like so­lar cells. Be­sides, the government had pro­vided in­cen­tives for ex­ports from north­east­ern states. It had added seven new mar­kets to Fo­cus Mar­ket Scheme and ex­tended Mar­ket linked fo­cus prod­uct scheme till March 2013 for ap­parel ex­port to the US and EU.

EX­PORTS IN OC­TO­BER

For the con­sec­u­tive six months, In­dia’s Oc­to­ber fell by 1.63 per cent year-on-year to USD 23.63 bil­lion. How­ever, the de­cline in overseas ship­ments was slight com­pared to the pre­vi­ous month. The rate of fall in ex­ports was much lower than 11 per cent dip recorded in Septem­ber. For the first seven months (April- Oc­to­ber) of the 2012-13 fis­cal, ex­ports have shrunk by 6.18 per cent to USD 166.92 bil­lion. “In Oc­to­ber, our ex­port per­for­mance has slightly im­proved,” Com­merce Sec­re­tary S R Rao has said. In­dia’s apex ex­porters body Fed­er­a­tion of In­dian Ex­port Or­gan­i­sa­tions (FIEO) has said that the de­cline in ex­ports is pri­mar­ily on ac­count of slow­down in domestic man­u­fac­tur­ing. In­dus­trial pro­duc­tion in Septem­ber dipped by 0.4 per cent. “We would be see­ing pos­i­tive growth in ex­ports from next month which may show dou­ble digit growth from Jan­uary on­wards or even ear­lier,” FIEO has added. Mean­while, im­ports ex­panded by 7.37 per cent to USD 44.2 bil­lion in Oc­to­ber 2012, high­est in 18-months, leav­ing a trade deficit of USD 20.96 bil­lion. Prior to this, the high­est monthly im­port was USD 45.2 bil­lion in May 2011. How­ever, im­ports dur­ing the pe­riod have dipped by 2.66 per cent to USD 277.13 bil­lion. Trade deficit for the pe­riod thus stands at USD 110.2 bil­lion. On in­creas­ing im­port bill, the Com­merce Sec­re­tary has said it has in­creased due to jump in the gold and pe­tro­leum im­ports. Oil im­ports in Oc­to­ber in­creased by 31.6 per cent year- on-year to USD 14.78 bil­lion. How­ever, non-oil im­ports de­clined by 1.73 per cent to USD 29.42 bil­lion. Dur­ing April-Oc­to­ber, oil im­ports grew by 10 per cent to USD 95.5 bil­lion, from USD 86.8 bil­lion in the cor­re­spond­ing pe­riod last year. How­ever, non-oil im­ports dur­ing the pe­riod dipped by 8.22 per cent yearon-year to USD 181.56 bil­lion. Sharma has ad­mit­ted that the USD 360 bil­lion ex­ports tar­get is dif­fi­cult to achieve in the back of global slow­down.

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