India’s foreign trade front presented a dismal picture in the inaugural month of the current fiscal, with both exports and imports declining by 33.2 per cent and 36.6 per cent respectively in dollar terms, compared to April 2008.
Provisional trade figures released by the Department of Commerce show that exports during April 2009 at $10,743 million were 33.2 per cent lower than the $16,076 million during April 2008.
In rupee terms, the decline was a relatively less drastic 16.4 per cent at Rs 53,779 crore (Rs 64,340 crore).
Imports, too, plummeted during April by 36.6 per cent at $15,747 million against $24,823 million in April 2008.
In rupee terms, the decline was by 20.6 per cent at Rs 78,832 crore against Rs 99,347 crore.
The Commerce Secretary, Mr Gopal K. Pillai, told Business Line here that the steep reduction in import was understandable, given that most of the imports were for export production such as in the case of gem and jewellery.
He hoped the situation would become normal only after September 2009, given that the country was cruising on a very high export and import growth trajectory of over 30 per cent during the first half of 2008-09.
Oil imports down
Oil imports in April 2009 at $3,634 million were 58.5 per cent lower than such imports valued at $8,749 million in April 2008.
Non-oil imports at $12,113 million were down 24.6 per cent ($16,074 million).
As a result of steeper decline in imports, the country’s trade deficit narrowed to $5,004 million in April 2009 from $8,747 million in April 2008.
Moody’s economy.com analyst said the sharper decline in imports helped contain the trade deficit, while lower global oil prices compared to a year ago played a role in keeping overall import payments in check.
It cautioned that the moderation in both inbound and outbound shipments would drag on the performance of various business sectors ranging from trade to transport.
Source : Business Line