INDIA BUSINESS WORLD - FEBRUARY 2006
THE MONTH THAT WAS

IMPORTS CROSS $100 B WHILE EXPORTS ON TARGET AT $75 B

Driven by strong growth in oil imports, the country's import bill for April 2005-January 2006 has crossed the $100-billion mark, registering a growth of 26.6%. Exports, on the other hand, have grown 18.8% to $74.9 billion during the first 10 months of the financial year.

Going by the trends, merchandise exports would cross the 2005-06 target of $92 billion as growth during the last two months of the fiscal is estimated to be higher than the current average. Due to 46% growth in oil imports that inflated the oil import bill to $35 billion, the trade deficit for the first 10 months has increased to $33.8 billion. Imports during the period amounted to $108.8 billion.

According to trade data released here today, exports increased 21.46% in January 2006 to $8.45 billion. According to preliminary estimates, exports have risen 18.8% to $74.9 billion against $63 billion during the first 10 months of 2004-05. Trade deficit shot up 48% to $33.8 billion during April 2005-January 2006 compared to $22.82 billion during the corresponding period of the previous fiscal.

Imports during January 2006 grew 10.69% at $11.3 billion against $10.2 billion during January 2005. Cumulative imports during April-January this fiscal surged 26.67% to $108.8 billion compared to $85.8 billion during the first 10 months of the previous fiscal.

Oil imports during the 10 months soared 46.91% to $35.2 billion while non-oil imports grew by a much slower rate of 18.8% to $61.8 billion. .