Merchandise export grew 27.6 per cent in March, final month of the 2016-17 financial year, the steepest rate in a little over three years.
However, this failed to help outbound shipment cross $300 billion in FY17, for a second straight year. Export was $305 bn in 2011-12 and remained a little over $300 bn in the next three years. These, however, declined to $269 bn in 2015-16.
Official data issued on Thursday showed an export rise for a seventh straight month in March to $29.2 bn, against $22.9 bn in the same month a year before, as petroleum and engineering export rebounded. For the entire 2016-17, export was $274 bn, a 4.7 per cent rise over the $262.3 bn the previous year.
Import also rose substantially in March, by 45.2 per cent to $39.7 bn from $27.3 bn in the same month of 2016. A spike in gold and crude oil import pushed the bill. Consequently, the trade deficit for March doubled to $10.4 bn, from $4.4 bn a year before. However, the trade deficit fell for the entire year fell 11 per cent to $105.7 bn, from $118.7 bn the previous year.
The World Trade Organization expects global trade growth of 2.4 per cent in 2017, less than expected earlier but higher than the tepid 1.3 per cent rise in 2016. It has further pegged global merchandise trade to grow by 2.1 to four per cent in 2018.
Ganesh K Gupta, president of the Federation of Indian Export Organisations, said: "The global scenario, reflecting a downward forecast, by WTO for 2017 does not reflect a positive picture.”
The lack of robustness in manufacturing can be gauged from another data item from the Reserve Bank, on services trade. There was a surplus here but it declined in the first 11 months of FY17 over the same period a year before. The services trade surplus was $59.3 bn in April-February 2016-17, against $64.4 bn a year before.
“Based on the wider than expected merchandise trade deficit in March, the current account deficit is likely to print at $16.5-17.5 bn in FY17,” said Aditi Nayar, principal economist at rating agency ICRA.
Major exchange earners also saw significant growth in March. Export of engineering goods saw the highest rise, up 47 per cent, similar to February. This led to $7.8 bn of sectoral export in March as compared to $5.3 bn a year before.
“Sustainability of the 47 per cent spike in export of engineering goods remains unclear, to the extent that it has been driven by higher metal prices,” said Nayar.
Earnings from petroleum export rose a massive 69 per cent to $3.7 bn, up from the 27 per cent rise in February. Readymade garment export rose by 20.3 per cent to $1.8 bn.
Import of crude oil and like petro products rose 102 per cent in March, adding $9.7 bn to the bill.
However, this failed to help outbound shipment cross $300 billion in FY17, for a second straight year. Export was $305 bn in 2011-12 and remained a little over $300 bn in the next three years. These, however, declined to $269 bn in 2015-16.
Official data issued on Thursday showed an export rise for a seventh straight month in March to $29.2 bn, against $22.9 bn in the same month a year before, as petroleum and engineering export rebounded. For the entire 2016-17, export was $274 bn, a 4.7 per cent rise over the $262.3 bn the previous year.
Import also rose substantially in March, by 45.2 per cent to $39.7 bn from $27.3 bn in the same month of 2016. A spike in gold and crude oil import pushed the bill. Consequently, the trade deficit for March doubled to $10.4 bn, from $4.4 bn a year before. However, the trade deficit fell for the entire year fell 11 per cent to $105.7 bn, from $118.7 bn the previous year.
The World Trade Organization expects global trade growth of 2.4 per cent in 2017, less than expected earlier but higher than the tepid 1.3 per cent rise in 2016. It has further pegged global merchandise trade to grow by 2.1 to four per cent in 2018.
Ganesh K Gupta, president of the Federation of Indian Export Organisations, said: "The global scenario, reflecting a downward forecast, by WTO for 2017 does not reflect a positive picture.”
The lack of robustness in manufacturing can be gauged from another data item from the Reserve Bank, on services trade. There was a surplus here but it declined in the first 11 months of FY17 over the same period a year before. The services trade surplus was $59.3 bn in April-February 2016-17, against $64.4 bn a year before.
“Based on the wider than expected merchandise trade deficit in March, the current account deficit is likely to print at $16.5-17.5 bn in FY17,” said Aditi Nayar, principal economist at rating agency ICRA.
Major exchange earners also saw significant growth in March. Export of engineering goods saw the highest rise, up 47 per cent, similar to February. This led to $7.8 bn of sectoral export in March as compared to $5.3 bn a year before.
“Sustainability of the 47 per cent spike in export of engineering goods remains unclear, to the extent that it has been driven by higher metal prices,” said Nayar.
Earnings from petroleum export rose a massive 69 per cent to $3.7 bn, up from the 27 per cent rise in February. Readymade garment export rose by 20.3 per cent to $1.8 bn.
Import of crude oil and like petro products rose 102 per cent in March, adding $9.7 bn to the bill.