Tuesday 16 June 2015

Exports Contract 20.2% To $22.34 Bn In May; Trade Deficit Narrows To $10.4 Bn

Goods exports from India dropped 20.19 per cent in May 2015 to $22.34 billion — the sixth continuous month of fall — as the slowdown in China added to the woes of the already slowing global economy.

Imports during the month were 16.52 per cent lower at $32.75 billion, mainly due to a sharp drop in petroleum imports. Trade deficit narrowed to $10.4 billion in the month under review compared with $11.23 billion in May 2014, according to a data released by the Commerce Ministry.

“It is not just our traditional markets, but demand from emerging markets, including the ASEAN countries and the rest of Asia, is also shrinking. The slowdown in China has hit economic activity in the smaller economies in Asia and exports of many other countries are on the decline,” said Ajay Sahai, Director-General, Federation of Indian Export Organisations.

Exports of petroleum products declined 59.10 per cent to $2.42 billion during the month due to fall in global oil prices. Other major export items, including engineering goods, electronic goods, gems & jewellery, cotton yarn and a number of agriculture items, also declined.

Import of a number of items, including petroleum products, transport equipment, chemicals, dyes, precious and semi-precious stones and vegetable oil, declined in May 2015.

While petroleum and crude imports during the month was 40.97 per cent lower at $8.53 billion, non-oil imports were 2.24 per cent lower at $24.21 billion.

Cumulative value of exports for April-May 2015-16 was $44.40 billion which was 17.21 per cent lower than that in the comparable period of the previous fiscal. Cumulative value of imports for the period April-May 2015-16 was 12.21 per cent lower at $65.80 billion.

Trade deficit for April-May 2015-16 was estimated at $21.39 billion which was higher than the deficit of $21.32 billion during April-May, 2014-15.

Source:thehindubusinessline.com



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