New Delhi: Impacted by a sharp appreciation in rupee, India’s export growth dropped to 18.91% to $12.69 billion in August this year from a scorching pace of 41.14% a year ago.
The decline was much sharper in rupee terms, with the export growth decelerating to 4.31% in August from a huge 50.57% in the same month last year.
The Federation of Indian Export Organisations expressed fear that eight million people engaged in export activities may lose jobs, if rupee rise was not curbed immediately.
“Nearly four million people have already lost their jobs and if the government does not intervene the number could increase to eight million by March next,” FIEO President Ganesh K Gupta said.
Growth of imports at 32.64% totalling $19.57 billion in August remained almost at the previous year’s level of 32.16%.
With widening of the export-import gap, the country’s trade deficit grew by 68.51% to reach $6.88 billion for the month under review.
In rupee terms, exports grew to Rs 51,787.31 crore from Rs 49,649.32 crore. Imports in rupee terms, increased by 16.35% to Rs 79,884.28 crore from Rs 68,658.24 crore.
For the April-August period, exports went up by 18.36% to $59.48 billion from $50.26 billion. Exports grew by a whopping 34.48% in the comparable period last year.
Commerce and Industry Minister ruled out direct government intervention but assured exporters of help.
“We do not calibrate rupee but our government will meet different export promotion councils in the next two-three days and see how we can refund some of the state level and central taxes... to exporters,” Nath told reporters.