Biggest fall in the last six years; Gold imports rise by 94 per cent; Trade deficit widens
Fall in exports and an increase in gold imports widened the trade deficit to four-month high of $11.79 billion in March
New Delhi: In one of the biggest decline in last six years, India’s exports fell by 21 per cent in March due to uncertainty in economic revival in key exporting markets. This is the fourth straight month of decline in Indian exports. As a result, India missed its export target of $340 billion for 2014-15 by 11.52 per cent. India achieved exports of $310.5 billion in 2014-15.
The fall in exports and an increase in gold imports widened the trade deficit to four-month high of $11.79 billion in March. Gold imports in March doubled or surged by almost 94 per cent to $4.98 billion due to declining prices and easing of restrictions by the Reserve Bank of India. However, overall imports contracted by 13.44 per cent to $35.74 billion in March. Fall in exports of petroleum products (59.5 per cent), gems and jewellery (8.36 per cent), chemicals (5.36 per cent) and engineering goods (2.5 per cent) led to the sharp contraction in March. These sectors contribute about 70 per cent to the country’s total exports.
Federation of Indian Export Organisations, president S.C. Ralhan said that continuous slowdown in demand in the global markets and liquidity problem has in a major way been responsible for the double digit negative growth in exports during the last quarter of the fiscal 2014-15. “What has become of even more concern is the fact that the decline during the last quarter of FY2014-15 was on a low base as exports declined in all the three months of the quarter,” he said
He said that Indian exporters need immediate attention and asked for declaring exports a priority sector and restoring of interest subvention scheme. “Such a big fall of over 21 per cent in exports is quite serious and is a pointer to the problems faced by the Indian merchandise in the global markets which are in the middle of slowdown. With the exception of the US, rest of the world, including China, Europe is facing a squeeze,” said EEPC India chairman Anupam Shah.
( Source : dc correspondent )
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