labels: economy - general
India''s imports grow over 30 per cent as exports rise 23.83 per cent in Februarynews
03 April 2007

Mumbai: Imports into the country increased by 30.10 per cent to $14.4 billion in February 2007 and exports rose 23.83 per cent to $9.7 billion over the year-ago period, official data revealed.

Exports grew 22.95 per cent to cross the $100-billion mark at $109.1 billion in the first 11 months of this fiscal, according to figures released by the commerce department.

Imports during the period grew 30.59 per cent to $164.98 billion, taking the overall trade deficit to $55.85 billion, which has grown by 48.6 per cent over the same period last year. The deficit during the same period last year was $37.57 billion.

The increase in trade deficit continued in February despite a 1.18 per cent negative growth in crude oil imports at $4.06 billion in February 2007, as compared to $4.10 billion in February 2006.

For April-February, crude oil imports grew 32.52 per cent to $52.67 billion. While India's crude oil bill declined, non-oil imports witnessed a healthy increase, which grew 39.77 per cent in February to $10.3 billion.

Non-oil imports for April-February 2006-07 grew 25.67 per cent to $112.31 billion as compared to $89.37 billion in the corresponding period of 2005-06. India's non-oil imports largely constitute capital equipment and intermediate goods, which in turn is expected to generate economic activity at home.

Even as exports growth has slowed, imports continue to grow more than 25 per cent, leaving the country with a wider trade deficit.

The data, however, does not include export of software services by the country's booming outsourcing industry, which was expected to top $30 billion in the fiscal year that just ended.

India's merchandise exports rose 7.9 per cent in February, the government said, a much slower rate than they had been experiencing, suggesting high inflation and an appreciating currency were taking a toll.

India's exports averaged an impressive 24 per cent increase in the first eight months of last fiscal year that ended in March, but growth has slowed since December.


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India''s imports grow over 30 per cent as exports rise 23.83 per cent in February