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India exports down by 14.8%
Publication Date : 04-09-2012
Plagued by a continuing slack in demand from America and Europe, India’s exports fell by 14.8 per cent to US$22.44 billion in July as compared to $26.34 billion recorded during the corresponding month in 2011.
The cumulative value of exports in the first four months of the current financial year stands at $97.64 billion, 5.06 per cent lower than the $102.85 billion recorded during the corresponding period of last year.
Imports dropped 7.61 per cent to $37.93 billion in July, leaving a monthly trade deficit of $15.49 billion, according to official data released yesteray.
The first four months’ data indicate exports are likely to remain sluggish in the coming months and the whole year target might fall substantially short.
The government has set a target of $360 billion of exports in the current financial year. Exports had increased by 20.94 per cent to $303.71 billion in the financial year ended 31 March 2012, surpassing the government’s target of $300 billion.
The commerce ministry said the lingering economic crisis in the European countries and North America has severely affected India’s foreign trade, especially exports.
The cumulative value of imports for the period April-July 2012-13 was $153.19 billion, 6.47 per cent down from the $163.80 billion registered during the corresponding period of 2011-2012.
With decline in both exports and imports, trade deficit has also narrowed. In the April-July period of the current fiscal, a cumulative trade deficit of $55.55 billion was recorded, which is lower than the deficit of $60.95 registered in the corresponding period of 2011-2012.
RV Kanoria, president of Ficci, said the decline in exports in July reflects only in part the continuing decline in global demand. “One of the main causes of concern is the need to bring back competitiveness in the economy and also to stimulate investments which are concomitant to building durable trade relationships,” he said. He also argued that Indian exporters are under pressure due to high cost of credit.