Press Trust of India
New Delhi, Nov 16: India’s exports remained in the negative territory for the 11th month in a row by registering a dip of 17.53 per cent in October to $21.35 billion due to a demand slowdown, while trade deficit showed an improvement. Exports contracted due to steep decline in shipments of petroleum products (57 per cent), iron ore (85.5 per cent), engineering (11.65 per cent) and gems and jewellery (12.84 per cent) amid a global demand slump. The imports too shrank an annual 21.15 per cent to $31.12 billion in October, narrowing the trade gap to $9.76 billion, lowest figure since February. The trade gap was $6.85 billion in February.
Gold imports during the month under review showed a sharp decline of 59.5 per cent at $1.70 billion. The cumulative exports during April-October this fiscal came down by 17.62 per cent to $154.29 billion as against $187.2 billion in the same period last year, according to data released by the Commerce Ministry. The trade deficit during the first seven months of the current fiscal has shrunk to $77.76 billion as against $86.26 billion last fiscal. According to exporters body FIEO, going by this trend it would be difficult to reach $300 billion in 2015-16.
“Going by the current trend and factoring little improvement, reaching $300 billion in the current fiscal looks a remote possibility,” Federation of Indian Export Organisations (FIEO) President S C Ralhan said. He said the delay in announcement of interest subvention scheme and redressal of issues relating to transaction cost could provide some support to exports during difficult global economic scenario. Oil and non-oil imports in October slid 45.31 per cent and 9.93 per cent to $6.84 billion and $24.2 billion, respectively. The country’s imports during April-October 2015-16 too declined by 15.17 per cent to $232 billion.
Oil imports during the first seven months of the fiscal were valued at $54.97 billion which was 42.07 per cent lower than the imports of $94.89 billion in the corresponding period last year. Non-oil imports during the period dipped by 0.89 per cent to $177 billion. The Commerce Ministry data also said that services exports during September dipped to $13.32 billion as against $13.58 billion in August this year.