MUMBAI, Dec 25: A combination of an extremely sluggish exports growth and a higher growth rate registered by imports has widened the trade deficit by $683 million to $2,496 million in the first half of the current fiscal.

Between April and September 1997, exports registered a tardy growth at 4.2 per cent ($16,821 million) compared to 9.9 per cent during the corresponding period the previous year, the report said.

Imports, however, registered 7.6 per cent growth at $ 19,317 million, up from 5.2 per cent the previous year.

Consequently, the trade deficit increased by $683 million to $2,496 milliom. In the corresponding period of the previous year, the trade deficit stood at $1,813 million.

In terms of special drawing rights (SDRs), both exports and imports during the first half of the currency fiscal registered higher growth of 10 per cent and 13.6 per cent, respectively. In the corresponding period of the previous year, exports in terms of SDR rose by 17 per cent and imports by 12 per cent.

Non-oil imports registered a higher growth in the first half of 1997-98.Admitting that the overall export performance was unsatisfactory, the RBI report pointed out that the relative export performance of individual groups differed significantly. For instance, the primary goods sector's export recorded 8.9 per cent growth whereas the manufacturing goods exports showed a paltry 3.6 per cent growth.

The percentage share of the primary goods in the total exports increased to 23.9 per cent in the current financial year compared with 22.8 per cent the previous year.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.