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2013: Exports weather global slowdown, to do better next year, say experts

Date 23-December-2013
Subject 2013: Exports weather global slowdown, to do better next year, say experts

New Delhi: Having seen ups and downs in 2013, India's exports are expected to register a healthy growth next year on account of improvement in the US, Europe and ASEAN region markets.

The country's merchandise shipments, which were mostly in negative zone during the first half due to the global slowdown, started posting a healthy growth during second half.

From July, the exports grew in double digits and registered a two-year high growth in October (13.47 per cent). However, the growth rate moderated to 5.9 per cent in November.

While efforts to diversify from traditionally strong markets of the US and Europe yielded positive results, continued dependence on western economies led to slow growth in overall merchandise shipments. The US and Europe account for about one-third of India's exports.

Although the country's exports surpassed the $300-billion mark during 2012-13 and 2011-12, its trade deficit also touched an all-time high of $191 billion during the last fiscal year (FY13) as imports surged.

A widening trade gap directly impacts current account deficit and the rupee. India's current account deficit touched a historic high of 4.8 per cent of GDP in 2012-13 and this was mainly attributed to high imports of gold and petroleum products.

A high level of current account gap puts pressure on the rupee, which has depreciated by about 15 per cent since April 30.

Building on the recent momentum, India's exports during the current fiscal year are likely to touch $325 billion on the back of improved demand in the US and Europe.

Source : profit.ndtv.com

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