NEW DELHI: The new financial year started on a dismal note for the country’s foreign trade with quick estimates for exports in April showing a drop of 33% to $10.7 billion and little hope of a recovery until September.
“Export growth is expected to remain negative till September this year as our exports grew rapidly in the first half of the last fiscal year. In fact, there won’t be too many new export orders during April-June as retailers would try to get rid of their piled-up stock,” commerce secretary GK Pillai told ET.
Imports fell a sharper 35% during the month to $16 billion on the back of low oil prices, falling exports and a deceleration in manufacturing activity and investment. Imports have been posting negative growth since January this year.
Since a considerable part of our imports are re-exported, falling exports are partly responsible for the drop in imports, a commerce department official said on condition of anonymity.
In April 2008, exports and imports were healthier at $16 billion and $24.82 billion, respectively. The global downturn had hit Indian exporters in October last year when exports slipped into negative territory due to shrinking orders from Japan and the Western markets such as the US and the EU. Export growth for 2008-09 contracted to about 3% after growing over 30% in the first six months of the year.
The commerce department’s quick estimates for exports in April 2009 could see small changes as the numbers from special economic zones (SEZs) may not have been fully captured. The revised trade data for the month is usually announced on the last day of the same month.
Source : The Economic Times