By IANS,
New Delhi: India’s merchandise exports fell for the ninth straight month in June and were valued at $12.82 billion, down 27.7 percent over $17.73 billion registered in the like month last year, the latest trade data showed Monday.
Imports, too, declined 29.3 percent in June, and were valued at $18.98 billion against $26.86 billion in the corresponding month of last year, showed the data release by the commerce and industry ministry.
Cumulatively, exports for the first quarter of this fiscal were down 31.3 percent at $35.43 billion, against $51.55 billion in the corresponding quarter of last fiscal. Imports were down 36.5 percent at $50.94 billion, against $80.19 billion.
Thus, the trade deficit for April-June 2009 was estimated at $15.5 billion against $28.64 billion during the like period of last fiscal.
Thanks to lower prices of crude oil in global markets, the country’s import bill on that count was as much as 50.6 percent lower in June. Such imports were valued at $5 billion, against $10.12 billion.
Cumulatively, such imports were down 56.8 percent during the first three months of this fiscal and were valued at $12.77 billion, against $29.54 billion in the like period of the previous fiscal.
Reacting to the decline in exports, industry lobbies said the upcoming foreign trade policy should address the problems of exporters.
“As exports contracted by over 31 percent in the first quarter on top of the modest 3.4 percent rise in 2008-09, it is imperative that the forthcoming foreign trade policy addresses exporters’ difficulties effectively,” said Harsh Pati Singhania, president of the Federation of Indian Chambers of Commerce and Industry (FICCI).
According to Moody’s economic research arm Economy.com, lacklustre exports were still a challenge for the Indian economy.
“Subdued external orders have weighed on industrial production, which has recently rebounded solely on domestic demand. However, as global prospects are now improving – especially with the US economic contraction easing, India’s exports may begin to recover later in the year,” it said in a statement.
“A solid climb is not expected until well into 2010 when major economies around the world are back on a firm footing.”
The consultancy added that imports were expected to recover at a faster pace than exports.
It further expressed hope that the infrastructure sector would revive soon as the government would pump in money into the industry.