Worrisome Slide

A rising rupee and uncertainty over GST take a toll on exports which continue to post slower growth month after month.

- Rajesh Rai

Have the country's merchandise exports come out of the woods? This question eludes a straight answer even after 11 consecutive months of growth in the country's shipments. Moreover, going by the Commerce Ministry's data, it is quite evident that India's exports are not in the pink of health.

In March this year, the shipments recorded growth of 27.6 per cent year on year. The robust March figures seemed to clarify that the country's exports were firmly in the positive zone after languishing in the negative territory for two successive years.

No sooner had the good news brought cheer that the export growth began losing steam in the following months. The country's shipments grew by a lower 19.77 per cent in April, further slowing down to 8.32 per cent in May, 4.39 per cent rise in June and 3.94 per cent in July.

Exports during April-July 2017-18 increased by 8.91 per cent over the corresponding period in the previous year to $94.75 billion, while imports during the same period grew by 28.3 per cent to $146.25 billion. Non-petroleum and non-gems and jewellery exports during this financial year so far jumped by 9.05 per cent to $94.75 billion. Oil imports during April-July 2017-18 saw a 20.87 per cent jump to $31.02 billion. Non-oil imports during FY18 increased by 30.46 per cent to $115.23 billion.

Dismal July

Goods exports in July registered meagre 3.94 per cent year-on-year growth, growing at the slowest pace since November 2016, when shipments rose by a mere 2.56 per cent. Data released by the Commerce Ministry show that major commodity groups of export showing positive growth in the month under review include engineering goods (15.16%), petroleum products (20.27%), organic and inorganic chemicals (20.67%), cotton yarn, fabrics and made-ups and handloom products (5.39%) and marine products (30.53%). Non-petroleum and nongems and jewellery exports in July increased by 6.93 per cent.