New Delhi, July 01: India’s exports continued to fall like there was no bottom, dipping by 29.2 per cent in May, and raised hopes for sops in the budget in the absence of any sign of recovery.
Government data released today showed that exports shrank for the eighth month in a row to USD 11.01 billion from USD 15.55 billion in May 2008 — an indication that there was no demand in the recession-hit global economies.
Imports too dropped by 39.2 per cent for the fifth consecutive month to USD 16.21 billion in May, helping halve the trade deficit in the month to USD 5.20 billion.
“Of course, it (continuous fall in exports) is a matter of concern… (overall) there are no signs of revival in the exports demand yet,” Commerce Secretary Rahul Khullar told reporters here.
“…I expect more sops for exporters in the budget,” Khullar said, adding that the silver lining was that trade in gems and jewellery was picking up.
“It is not surprising (decline in exports)… this reflects recession in global economies,” Chief Economist of rating agency CRISIL Subir Gokarn said.
The Commerce Secretary also said that some exporters have raised concern over rising rupee due to inflow of foreign funds. The domestic currency appreciated by about 23 per cent in 2008.
Oil imports during May 2009 plunged by 60.6 per cent to USD 4.13 billion from USD 10.49 billion in the corresponding period of the previous year. Non-oil imports during the month declined by 25.4 per cent to USD 12.07 billion from USD 16.18 billion.
Imports during the first two months of the current fiscal were USD 31.95 billion against USD 51.50 billion.
The trade deficit during April-May 2009-10 was USD 10.20 billion against USD 19.88 billion.
During April-May 2009-10, oil and non-oil imports dipped to USD 7.76 billion and USD 24.19 billion, respectively.
Oil and non-oil imports in April-May 2008-09 were USD 19.24 billion and USD 32.26 billion, respectively.
Overseas shipments grew by a meagre 3.4 per cent to USD 168.7 billion in 2008-09 after the global slowdown began to pinch in the second half of the previous fiscal.
–PTI