Economy
India trade deficit in July better than expected, says Nomura

According to Nomura, the sharp pickup in exports suggests that global demand is recovering. Even though external demand has improved, weak domestic demand has kept a lid on India's imports

After two months of fall, India’s trade deficit remained flat at $12.3 billion in July from $12.2 billion in June due to better-than-expected export growth. During July, goods exports shot up 11.64% to $25.83 billion buoyed by a growth in shipments of pharmaceuticals, textiles, chemicals and heavy machinery.

 

In a note, Nomura Financial Advisory and Securities (India) Pvt Ltd, said, "The sharp pickup in exports suggests that global demand is recovering. Even though external demand has improved, weak domestic demand has kept a lid on imports. Imports contracted 6.2% in July compared with a decline of 0.4% in June."

 

A sharp decline in gold and silver imports to $2.97 billion in July 2013 compared to $4.47 billion of imports in the comparable month last year, resulted in an overall 6.2% fall in overall exports to $38.10 billion.

 

Trade deficit narrowed to $12.26 billion during the month compared to the previous months bringing some relief to policy makers grappling to keep the current account deficit in check.

 

According to commerce secretary, SR Rao, a depreciating rupee had helped exporters as their realisation had increased but a stable foreign exchange helped in long-term contracts.

 

Oil imports during July 2013 was 8% lower at $13.816 billion, while non-oil imports at $25.39 billion were 5.26% lower than the same month last year.

 

In the April-July period, exports rose 1.72% to $98.29 billion. Imports during the period posted a growth of 2.82% to $160.73 billion. Trade deficit during April July 2012-13 was $62.44 billion compared to $59.69 billion last year.

 

Rao said the incentives announced recently to boost exports would show results in the coming months.

 

Exports in 2012-13 fell 1.6% to $300.6 billion as slowdown in the global economy shrunk demand while imports increased by a marginal 0.44% to $491.48 billion from $489.31 billion creating a trade deficit of $190.91 billion.

 

"With domestic demand weak and global demand improving, the trade deficit should improve this fiscal year. We expect the current account deficit to moderate to 4.0% of GDP in FY14 from 4.8% in FY13 due to lower gold imports and lower non-oil and non-gold imports due to subdued domestic demand. However, we expect net capital inflows to also slow due to worsening domestic growth prospects, which will result in a balance of payments deficit," said Nomura.

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Auto industry’s breakdown continues; July car sales fall 7%

While vehicle sales across the segments are down, scooter and vans reported higher numbers due to robust demand during July

Auto sales continued to decline during July as well, with number of vehicles sold during the month declining 2.08% to 14.15 lakh units, says data released by the Society of Indian Automobile Manufacturers (SIAM). While vehicle sales across the segments are down, scooter and vans reported higher sales on robust demand.

 

According to SIAM, domestic passenger car sales in July declined 7.4% to 1.31 lakh units continuing its downward journey. During April-July 2013, passenger vehicle (PV) sales, including passenger cars, utility vehicles (UVs) and vans declined 7.5% to 1.86 lakh units from 2.03 lakh units, same period last year. While sales of cars and UVs are down, vans recorded 8.86% higher sales to 18,066 units during the month.

 

During July, motorcycle sales too declined 1.52% to 8.09 lakh units from 8.21 lakh while total two-wheeler sales declined marginally to 11.31 lakh units from 11.32 lakh units same period a year ago. Among two-wheeler category, scooter/scooterette continued upward journey with 9.8% higher sales to 2.71 lakh units from 2.47 lakh units in July 2012.

 

 

Total sales of commercial vehicles declined by 14.9% to 55,301 units from 65,008 units in the year-ago period, SIAM said. Among the category, light commercial vehicles (LCVs) and goods carriers recorded biggest fall of 18.7% and 18.3% to 37,932 and 33,709 units, respectively.

 

Total sales of vehicles across categories registered a decline of 2.08% to 14.15 lakh units as against 14.45 lakh units in the same month of 2012, SIAM added.

 

As per the data, medium and heavy commercial vehicle (M&HCV) sales witnessed sharp fall during April-July 2013. During the four months, M&HCV sales fell 16.65% to 74,556 units from 89,449 units same period last year.

 

On the contrary, two-wheelers and UVs are least affected by the downfall. During April-July, two-wheeler sales declined 0.64% to 46.23 lakh units from 46.52 lakh units while UV sales declined 1.03% to 1.60 units from 1.62 lakh units, same period a year ago, SIAM said.

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Glenmark receives FDA nod for alcohol abstinence drug

Glenmark's unit in the US, received FDA approval to market in that country generic version of Forest Laboratories’ Campral Delayed Release Tablets, used for alcohol abstinence

Glenmark Pharmaceuticals on Monday said its unit received US Food and Drug Administration (FDA) nod to market generic version of Forest Laboratories’ Campral Delayed Release Tablets, a drug used for alcohol abstinence, in the American market.

 

The pharmaceutical company said its unit Glenmark Generics Inc has been granted final abbreviated new drug approval (ANDA) from the FDA for Acamprosate Calcium Delayed Release Tablets.

 

Based on IMS Health sales data for the 12-month period ending March 2013, Acamprosate, which is indicated for the maintenance of abstinence from alcohol in patients with alcohol dependence, garnered sales of $21 million.

 

The Mumbai-based firm’s current portfolio consists of 88 products authorised for distribution in the US market and 53 ANDAs are pending approval with the FDA.

 

At 3.10pm Monday, Glenmark Pharmaceuticals was trading 2.8% down at Rs552.5 on the BSE, while the 30-share Sensex was marginally up at 18,961.

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