Thursday, February 3, 2011

Indian imports contract by 11%

Imports into the country contracted by 11.1 per cent to $ 25.13 billion in December raising concerns about the pace of industrial growth. The contraction in imports come at a time when industrial production growth dipped to 18 months in November at 2.7 per cent.
However, economists don’t think the negative growth in imports is a trend. “Right now I dont think there is any concern but if it continues then when we will have to see,” said Mr D.K. Joshi, chief economist at rating agency Crisil.
He said that with India growing at above 8 per cent and commodity prices rising, the imports into the country will grow at a faster rate. In December exports grew by 36.4 per cent to $22.5 billion, the highest in 33 months, on back of increased demand in the US and the European Union. It has raised hopes that exports will exceed this fiscal’s target of $ 200 billion.

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