Exports rise on signs of recovery in US, EU Grow At 4.2%, Fastest Pace In 12 Months

New Delhi: Exports seem to be on a recovery path with shipments out of the country growing at their fastest pace in 12 months amid signs of improvement in Europe and the US. What will provide further comfort to the government is a comparatively healthier trade balance with the gap between exports and imports narrowing to around $15 billion in February from record levels of nearly $20 billion seen in recent months. 

    According to provisional data released by the commerce department on Monday, exports climbed 4.2% to $26.3 billion during February, compared to $25.2 billion a year ago. During the period, imports grew 2.6% to $41.2 billion as non-oil imports fell 3.6% to $26 billion. 
    There was, however, little respite from the rising burden of crude oil imports that climbed 15% to over $15 billion. Even gold imports rose over 15% despite the government taking steps to dampen the demand for the precious metal to manage the rising current account deficit. 
    The main reason for the widening current account deficit is the higher trade deficit as exports contracted over 4% to $266 billion during April-February 2012-13, while imports are up 0.3% at $448 billion. Imports have climbed due to demand for crude edible oil and petroleum as well as gold remaining steady amid falling exports. But the latest data may provide some respite to policymakers. 
    Other export sectors that have fared well include rice, oil meals, pharmaceutical and chemicals.