Import data increases slowdown fear

According to the provisional trade data for the first half released by the government on November 1, 2007 showed imports rose by 2.3% to $16.83 billion during September, pulling down the growth rate for first half to 25.5%. Oil imports are estimated to have increased by 8% to $5.5 billion while non-oil imports dipped by 0.15% $11.74 billion. Data on customs collections too pointed at a virtually stagnant import bill. The unease increases with the fact that rupee has appreciated against dollar, which already has exporters complaining about loses; it should have created a steep increase in imports. Commerce and Industry Minister, Kamal Nath said the non-oil import data did not reflect a slowdown. But the trade data had a bad news. In dollars terms, export continued to grow at 19 % but in rupee terms it showed a 4.3% rise reflecting a low realization for goods exported from India