India starts fiscal year with a negative trade balance of $13.4 billion in April

India's import grew at a slow pace of 3.8 per cent in April 2012, the first month of the 2012-13 financial year, to $37.9 billion while its exports grew at an even slower pace of 3.2 per cent to $24.50 billion.

The balance of trade was still a negative $(-)13.4 billion during the month, commerce secretary Rahul Khullar said while interacting with media persons.

He said the government expects exports to grow between 10-15 per cent during this financial year, slower than the nearly 21 per cent growth recorded during 2011-12.

"April growth rate of 3.2 per cent shows that there is demand concern. Though India is getting an edge in engineering and chemical exports, bad news is about export of readymade garment, made-ups and cotton yarn," Khullar said.

During April 2012, engineering exports recorded a growth of 14.2 per cent at $5.2 billion, electronics exports grew 5.4 per cent to $0.6 billion; drugs and pharmaceutical exports rose 33 per cent to $1.1 billion, leather exports rose 3.2 per cent to $0.3 billion, exports of basic chemicals grew 11.4 per cent to $0.9 billion, marine product exports rose 21 per cent to $0.2 billion. On the other hand, exports of cotton yarn and fabric made-ups registered a negative growth of 20.4 per cent at $0.49 billion while gems and jewellery exports declined 25.7 per cent to $2.6 billion.

Import growth was led by coal imports, which rose 25.5 per cent to $1.2 billion, followed by machinery imports, which  rose 14.9 per cent to $2.9 billion in April 2012. Import of petroleum, oil and lubricants grew 7 per cent to  $13.9 billion in April while import of gold and silver was down 33 per cent year-on-year at $3.1 billion and imports of pearls and precious stones were down 63.3 per cent at $1.2 billion.