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Better demand slows export contraction

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  • India’s merchandise exports shrunk at the slowest pace in eight months, dipping 19.7% in August. Significantly, in value terms, August exports are at the highest since September last year—the last time exports grew. “Exports in August 2009 stood at $14.3 billion, against $17 billion a year ago,” commerce secretary Rahul Khullar said on Thursday. The improvement was attributed to a growth in shipments of rice, tobacco, marine products, iron ore, coal & other mineral products, man-made yarn, fruits & vegetables, as well as garments. However, the fact that only exports of rice, tobacco and fruits & vegetables have grown between April and August tempered the optimism. “We do not know if there is a revival. But there is definitely a glimmer of hope,” Khullar added. Commerce minister Anand Sharma, on the other hand, was more confident. “There has been some turnaround. But we will have to see if growth returns to pre-slowdown levels,” Sharma said.

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