Exports post mere 3.8% growth in November, slowest in 2 years

NEW DELHI: India's exports recorded their slowest pace of growth in two years at 3.8 per cent in November after being hit by the global slowdown and accompanying moderation in demand in developed markets,

In November, 2010, the country's overseas shipments amounted to USD 21.48 billion.

"The November export growth is two-year low. If it will decline at this pace, the exports growth may enter a negative zone," export body Fieo Director General Ajay Sahai said.

The growth rate is the lowest since October, 2009, when it contracted by 6.6 per cent.

In sharp contrast, imports grew at a faster rate of 24.5 per cent year-on-year to USD 35.9 billion in November, translating into a trade deficit of USD 13.6 billion, according to Commerce Ministry data released today.

From a peak of 82 per cent in July, export growth slipped to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October.

In November, oil imports grew by 32.28 per cent to USD 10.3 billion, while non-oil imports rose by 21.69 per cent to USD 25.6 billion vis-a-vis the year-ago period.

In the eight-month April-November period, exports aggregated to USD 192.69 billion, a year-on-year growth of 24.55 per cent, thanks to the surge witnessed in the early months of the fiscal.

Experts opined that the country's exports growth during the entire fiscal would stand at about 20 per cent.

"Though demand condition is not good in the US and Europe, other markets in the Asean region and Latin America are doing good," Indian Institute of Foreign Trade Director K T Chacko said.