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Exports in dollar terms decline, imports rise

Exports in dollar terms during April-July 1997-98 increased by 1.8 per cent as against a rise of 11.4 per cent during April-July 1996-97.

According to the latest data released by the finance ministry, imports increased by 7.9 per cent as against a rise of six per cent during April-July 1996-97. Imports of POL declined by 11.8 per cent while non-POL imports increased by 14.5 per cent in the same period.

Foreign exchange reserves (excluding gold and SDRs) were Rs 22.367 billion dollars at the end of 1996-97. The reserves have increased by 4.018 billion dollar at the end of August 1997.

The average market exchange rate of the rupee appreciated against the pound sterling, Deutsche mark, Japanese yen and French franc, and depreciated against the US dollar during August 1997 as compared to the market rate prevailing during July 1997.

The other highlights of the report were foodgrain stocks at 17.82 million tonnes as on August 1, 1997; industrial growth 5.2 per cent in April-June 1997-98; overall good performance in infrastructure sector in April-July 1997-98 with a significant improvement in fertiliser production.

The money supply growth (M3) was marginally lower and there was a decline in net Reserve Bank of India credit to the government. The annual inflation rate stood at 3.8 per cent as on September 20, 1997.

The monsoon rains were normal or excessive in 91.4 per cent of the meteorological subdivisions of the country.

Industrial production in April-June 1997 increased by 5.2 per cent as against an increase of 11.8 per cent in April-June 1996. Production in the manufacturing sector increased by 4.8 per cent (against an increase of 15.0 per cent), electricity generation increased by 5.4 per cent (against an increase of 2.2 per cent) and production in mining and quarrying by 7.1 per cent (against an increase of 2.5 per cent) in the same period last year.

During April-July 1997-98, production in all basic infrastructure industries showed a good performance as compared to April-July 1996-97. During the period April-July 1997-98, electricity generated increased by 6.2 per cent, cement by 5.2 per cent, petroleum products by 7.4 per cent, fertilisers (N) by 26.7 per cent, crude petroleum by 3.2 per cent while saleable steel declined by 3.9 per cent. Revenue earning goods traffic on the railways increased by 7.3 per cent.

The gross external aid in April-July 1997 at Rs 23.32 billion was 2.2 per cent higher than that of Rs 22.81 billion in April-July, 1996. Net aid (net of repayments) amounted to Rs (-) 530 million as against of Rs (-) 720 million.

The outflow, on account of net aid (net of repayments and interest repayments) was Rs 16.87 billion as against the outflow of Rs 16.29 billion in the corresponding period last year.

UNI