Poor Overseas Demand resulted in mere 4.3% growth in India's Merchandise Exports in February 2012

As per data released by the Commerce Ministry on 9 March 2012, India's merchandise exports in February grew only by 4.3 per cent to $24.6 billion due to poor overseas demand. Exports in February grew at the slowest pace in three months. The poor performance in the export sector was attributed to dip in demand for electronics, engineering and textiles goods in Europe. Imports outpaced exports and rose 20.6 per cent to $39.8 billion in February 2012 thereby moving the trade deficit to $15.2 billion. Imports however declined from $40.1 billion in January 2012.

Meanwhile, exports during April 2011-February 2012 registered a 21.4 per cent growth to reach $267.4 billion, crossing $250.46 billion in the last financial year. Imports during this period grew at a faster pace of 29.4 per cent to $434.2 billion, widening the trade deficit to $166.8 billion.

During April 2011-February 2012 exports recorded a 21.4 per cent growth to reach $267.4 billion, crossing $250.46 billion reached in 2010-11. Imports during April 2011-February 2012 period grew at a faster pace of 29.4 per cent to $434.2 billion, widening the trade deficit to $166.8 billion during the period. The main drivers of exports during April 2011-February 2012 were engineering, petroleum products and gems and jewellery.

Electronics exports registered growth rate of 3.5 per cent to $8 billion during the fiscal till February 2012 because of poor demand in the European Union. Demand in the European Union account for 60-70 per cent of India's total electronics exports.

The high import bill was attributed to the rise in prices of oil and other commodities. The average price of oil in 2011 was $70-75 billion a barrel to over $100 a barrel in 2012. The main components of imports during April 2011-February 2012 were oil ($132.6 billion, and 41 per cent); gold and silver ($55 billion and 38.5 per cent); machinery ($32.2 billion and 27 per cent).