EXPORTS DIP BY 5%, GOLD IMPORTS SOAR, DEFICIT BITES

NEW DELHI: India’s exports fell by 5.04% in October — the first contraction in seven months — as shipment orders across most sectors plunged, while the trade deficit jumped as gold imports, driven by festival demand, soared.

Gold shipments vaulted by 280% in October to $4.17 billion from $1.09 billion a year ago. The government is learned to be examining re-introducing curbs on imports of the yellow metal.

Trade deficit during the seven months of 2014-15 till October is at $83.75 billion, against $87.31 billion a year ago, translating into a surge of 26.1%.

Merchandise exports in October stood at $26 billion while imports surged by 3.62%, translating into an increase in the trade deficit to $13.35 billion during the month, from $10.59 billion in the corresponding period last year.

For the April-October period, exports increased marginally by 4.72% to $189.79 billion. Imports are up 1.86% to $273.55 billion in the same period this fiscal.

The decline in exports figure of October comes at a crucial time when the country is to review its trade policy next month, said M Rafeeque Ahmed, president, Federation of Indian Export Organisations,

“Surprisingly, all our performing sectors that were expected to bring a turnaround either exhibited negative or miniscule growth. While engineering, drugs and pharmaceuticals, gems and jewellery, cotton and man-made yarn, carpets — all slipped into negative, joining petroleum and plantation sectors, growth has moderated in leather, apparels and marine sector. This is an alarming situation,” Ahmed said.