NEW DELHI: A sharp fall in global commodity prices has helped India cut its import bill by a third in April-August period this fiscal to USD 102.3 billion from USD 153.69 billion a year ago.
The decline in the country's import expenditure not only resulted due to a correction in the crude oil prices, which had peaked in July 2008, but also by over 40 per cent drop in the world commodity prices, as per a RBI's bulletin.
A reduction in imports at the rate faster than decline in exports also helped India almost halve its trade gap to USD 38.17 billion in the first five months of 2009-10.
Experts say importers have also gained from strengthening of rupee against the dollar which has of late been hammered against major global currencies.
"Commodity and oil prices crashed globally. The dollar value of imports fell down," Crisil Principal Economist D K Joshi said.
During April-August 2009 rupee appreciated by about 3.5 per cent against the US dollar. The dollar has also weekened against major currencies including Yen in the past one month.
In 2008-09, the country's imports had reached USD 287.75 billion widening the trade deficit to USD 119 billion.
The April-August trade gap is only USD 38.17 billion and it may remain less than USD 100 billion in the current fiscal. It was USD 60.7 billion in the first five months of 2008-09.
India's import of principal commodities include petroleum, capital goods, precious stones.
Source : The Economic Times