India's exports contracted for the second consecutive month in June by 5.45 per cent year-on-year to $ 25 billion in the wake of growing economic uncertainties in developed economies.
Reflecting slowdown in the domestic economy, imports too dipped sharply by 13.6 per cent to $35.37 billion from $ 40.8 billion in June 2011, resulting in a narrower trade deficit of $ 10.3 billion during the month.
The decline in the country's shipments comes amid India's economic growth slipping to 9-year low of 6.5 per cent in 2011-12, and subdued industrial output in the first two months of the current fiscal.
"The contraction in global demand and deceleration in manufacturing are primary reason for decline in exports," Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said.
According to the data released by the Commerce Ministry today, exports during the April-June quarter of 2012-13 fiscal dipped by 1.7 per cent to $75.2 billion, from $ 76.5 billion in the same period last fiscal.Commerce Secretary S R Rao has said the markets in the euro zone, the US, China and Japan are still not showing healthy growth and these are signs of global recession.
Imports during the first quarter of this fiscal dipped by 6.10 per cent to $115.25 billion, from $122.74 billion in the April-June period of last fiscal.
Trade deficit during the quarter stood at $ 40 billion.
Experts expressed relief over narrowing trade deficit.
"Trade deficit has come down. We expect it to be under control in the coming months," international trade expert with Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said. Decline in exports was particularly witnessed in sectors like handicrafts, jute, tea and cashew.
Top exporting commodities during the April-June quarter included rice, which increased 104 per cent, iron ore (40 per cent), oil meal (38 per cent) and spices (35 per cent).
In value terms, exports of petroleum products ($ 12.9 billion), engineering goods ($14.6 billion), gems and jewellery ($10 billion), and pharmaceutical and readymade garments too showed strong growth.
Imports of petroleum products touched $ 41.5 billion during April-June 2012. Other importing sectors which registered growth include gems and silver ($9.4 billion). machinery ($8.5 billion), electronics ($7.1 billion).
Source : dailypioneer.com