New Delhi, Oct. 1 The country’s exports continued to slide for the eleventh month in a row, in August, though the pace of decline slowed to settle just under 20 per cent.
According to provisional figures compiled by the Directorate-General of Commercial Intelligence and Statistics and released by the Commerce Ministry here today, India’s exports declined 19.4 per cent in August, at $14.28 billion, against $17.72 billion in the same month in 2008. However, cumulatively, the exports were down 31 per cent at $64.12 billion during April-August 2009 against $93 billion in the corresponding previous period.
Exports account for about 15 per cent of the country’s GDP (gross domestic product) and the declining trend has cost jobs in labour-intensive export segments such as textiles, gem and jewellery, marine products, handicrafts and leather, say trade policy experts.
Lower imports
The country’s imports too nosedived in August by 32.4 per cent at $22.66 billion against $33.51 billion in the corresponding month of 2008. Cumulatively, imports in April-August 2009 at $102.3 billion were down 33.4 per cent against $153.69 billion in the corresponding previous period. This fall was led by a steep drop in the country’s oil import bill which was down 47 per cent at $28.27 billion in the 2009 period against $53.74 billion in the corresponding months of 2008 when oil prices were on a roller-coaster ride. Oil imports in August were also down 45.5 per cent at $6.2 billion against $11.5 billion in the corresponding month of 2008.
Non-oil imports too were lower by 25.5 per cent at $16.38 billion in August against $21.9 billion in the corresponding previous month. Cumulatively, the non-oil imports during the first five months of the current fiscal being down 25.9 per cent at $74 billion against $99.9 billion in the corresponding months of 2008 does not bode were for the economy as these imports are also a barometer of investment demand, trade economists say.
Trade deficit falls
In view of the persistent decline in exports and imports, the country’s trade deficit for April-August fell sharply to $38.17 billion against a massive $60.73 billion in the corresponding period in 2008.
Reacting to the trade data for August, the Federation of Indian Export Organisation (FIEO) President Mr. A. Saktivel, welcomed the slowing and hoped exports would pick up during the Christmas season on a demand rebound in the developed world.
He said that with the Committee for Duty Drawback — a form of refund exporters get on account of import duty on export production — set to announce all-India rates shortly, the exporting community hopes to compete better with competitors who are handsomely rewarded by their authorities, and anticipates a 5 per cent improvement in all segments.
Source : Business Line