New Delhi: India’s exports contracted for the seventh month in a row in June increasing challenges for the Modi government to expand economic activity in the country. India’s exports dipped by 15.82 per cent to $22.28 billion in June due to global slowdown and dip in crude oil prices. Imports also declined by 13.40 per cent to $33.11 billion in June due to fall in oil and gold shipments.
The main exporting sectors which reported negative growth include petroleum products (about 53 per cent), engineering (about 5.5 per cent), leather and leather goods (about 5 per cent), and chemicals (1.26 per cent) in June. Gold imports too dipped by almost 37 per cent to $1.96 billion in June.
The trade deficit widened slightly to $10.83 billion from $10.41 billion in May. However, trade deficit was lower than $11.76 billion in June 2014. “The narrowing of the trade deficit in June 2015 relative to June 2014 can be largely attributed to a substantial decline in gold imports. In spite of the reduction in June 2015, the value of gold imports rose modestly to $7.5 billion in first quarter of FY16 relative to the year-ago period,” said Aditi Nayar, senior economist at rating agency ICRA.
Centre asks states for policy to boost exports
With exports in negative zone, the commerce ministry on Wednesday asked states to fasten infrastructure development process and formulate a trade policy in order to boost exports. Commerce secretary Rita Teaotia chaired a meeting of senior officials from states.
The meeting was held with the aim to increase the role of states in India’s exports. Modi government is encouraging states to focus on developing policy to improve exports. The ministry asked states to focus on products which have good potential for exports.
