Exports of goods rose a mere 2.73 per cent in September to $28.9 billion, as petroleum products, electronics, iron ore, handicrafts, coal and minerals and most agri produce registered a fall in outbound shipments.

A surge in gold imports by 450 per cent to $3.75 billion during the month widened the trade deficit to $14.24 billion, more than double the $6.12 billion registered in September last year.

There was a spike in gold imports, partly because of the low base, as imports in September 2013 were low due to restrictions imposed by the Government. With the Government now allowing private jewellery exporters to import again and high demand arising from the festival season, imports are rising.

Imports of goods increased 25.96 per cent to $43.15 billion in September year-on-year.

“A fall in petroleum prices, downturn in major economies in Europe, policy uncertainty and low manufacturing growth in the country are all adversely affecting the country’s exports,” said Ajay Sahai from the Federation of Indian Export Organisations.

Sahai said the Government should outline its Foreign Trade Policy and announce continuation of the interest subvention scheme without delay as this is impacting exporters’ pricing decisions and ability to accept orders.

Exports in the first six months of the current fiscal year grew 6.47 per cent to $163.7 billion from $153.75 billion in the comparable period of the previous fiscal year.

While outbound shipments posted double-digit growth in May and June this year, growth started moderating in July and August due to uncertainty in the global market, especially Europe, and because of the crisis in West Asia.

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