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INDIA
BUSINESS WORLD - MARCH
2005
THE MONTH THAT WAS
IMPORTS
SET TO CROSS $ 100 b
With
imports rising at 36.3%, Indian economy will zip pass another
milestone, the triple-digit import mark, at the end of this
financial year. Latest trade data indicate that imports have
touched $93.6 billion as of April-February 2004-05, compared
to $68.6 billion during the first 11 months of the previous
fiscal.
With the average import per month standing at over $9.4 billion
during 2004-05, it is now certain that India's import bill
for the fiscal year will be in excess of $100 billion.
More than a quarter of this, around $28 billion, is on account
of crude oil which has left a big burden on the exchequer
due to high international prices as well as increasing volume
of imports.
Due to the strong surge in imports, trade deficit has more
than doubled but there seems to be no cause for worry now
in view of the strong foreign exchange reserves, growing flow
of invisibles as well as foreign capital.
The growing appetite for imports indicates that the economy
is on a roll and the domestic industry is spending on capital
goods as well as raw materials.
According to commerce department's official data, India's
imports during April-February 2004-05 stood at $93.6 billion,
up 36.33% over $68.6 billion for the corresponding 11 months
of the previous fiscal.
Preliminary estimates indicate that oil imports during April-February
were $26.6 billion –– 44.45% higher than the year-before oil
imports bill of $18.4 billion. Non-oil imports during April-February
are estimated at $66.9 billion, up 33.36% from $50.2 billion
of a year earlier.
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