Exports to rise by 1.5% in 1012-13

CHENNAI: India's exports are expected to rise by 1.5% to $ 308.9 billion in 2012-13. "This is lower than the 3.5% growth projected earlier. A sharp fall in exports in July 2012 has warranted a downward revision in our export forecast," economic think tank -- Centre for Monitoring Indian Economy (CMIE) said in its September bulletin.

Exports declined by 14.8% to $ 22.4 billion in July. This was the sharpest drop in monthly exports in the last three years. Consequently, exports fell by 5.2% during April-July 2012, as against a 46.6% rise in the same period last year.

The World Economic Outlook published by IMF expects the 17 nation Euro zone to go into a mild recession in 2012. This is expected to affect the demand for India's exports.

India's imports are expected to decline in 2012-13. "We expect imports to fall by 3% to $474.6 billion in the year. A fall in both Petroleum, Oil and Lubes (POL) and non-POL imports is expected to lead the decline in total imports," CMIE said.

Due to a sharper decline in imports vis-a-vis exports, CMIE expects the trade deficit to show an improvement in 2012-13. "We expect the trade deficit to touch $165.7 billion in 2012-13 from an all time high deficit of $185 billion in the preceding year," CMIE said.


Source : timesofindia.indiatimes.com