Share of exports in India’s GDP falls to 17.3 per cent
27 Aug 2013
The share of exports in India's gross domestic product (GDP) dipped marginally to 17.3 per cent in 2012-13 amidst a slowdown in demand for the country's products and services, commerce and industry minister Anand Sharma informed the Lok Sabha in a written reply today.
"The share of export sector in the GDP of the country has shown a consistent rise except for 2012-13, when there was a marginal dip in the share from 17.6 per cent to 17.3 per cent," the minister informed the House.
The share of exports in the country's GDP increased to 17.6 per cent in 2011-12 from 15.7 per cent in 2010-11, he informed the lower house of Parliament.
"This is attributable to international economic crisis and contraction in global demand," he said.
Although merchandise trade in absolute terms has increased, India's trade deficit increased, he pointed out.
"The global economic crisis, the sovereign debt crisis in Europe and the economic slowdown in developed economies have adversely impacted demand for our exports," he said, adding, that falling overseas demand has affected exports of engineering goods, gems and jewellery, textiles, electronic goods and iron ore during 2012-13.
Meanwhile, the chairman of prime minister's economic advisory council C Rangarajan had, on Monday, said it would be possible for the country to contain its current account deficit (CAD) at $70 billion, about 3.7 per cent of its gross domestic product (GDP), in the current fiscal.
He also said that the country's economic growth will be around 5.5 per cent in the 2013-14 fiscal.
"Reducing CAD from $88 billion (2012-13 fiscal) to $70 billion is possible because of various actions taken by the government. Gold imports falling by $10-12 billion itself will be a great relief," Rangarajan said at an event.
India's CAD -- the gap between inflow and outgo of foreign exchange -- widened to a record high of $88 billion or 4.8 per cent of GDP for the fiscal ended 31 March, from $78.2 billion in 2011-2012, about 4.2 per cent of GDP.
