Indian exports continue to decline as the continued economic recession and global meltdown cause a steepening slump in the demand for its goods in the UK and Europe. According to data released by the Union Commerce Ministry, exports declined by 21.7% in February, recorded to be the lowest in 13 years. Imports also plummeted by 23.3%, recording a second consecutive fall.
According to the data, exports dropped to $11.91 billion in February from $15.22 billion in the corresponding period last year. Imports fell from $21.93 billion to $$16.82 billion. The trade deficit stands narrowed at $4.91 billion from $6.1 billion in January. In rupee terms, exports shrunk 3% while imports dipped by 4.9%. According to a recent report by the WTO, world trade is likely to shrink by 9% in 2009. According to the Planning Commission, India’s exports could register a growth of as low as 3% in 2009-10.
Also, in the month of February, oil imports dipped to $4.04 billion from $7.71 billion. Non-oil imports stood at $12.77 billion as against $14.22 billion in the corresponding period last year.
It is to be noted that exports slumped by 12.1% in October after registering an impressive rise of 30.95 IN the first six months of the previous fiscal. It fell further by 9.9% in November, 1.1% in December, and 16% in January.
The Federation of Indian Export Organizations (FIEO) believes that in 2009-10, export would grow by about 5% and would touch $175 billion as against the targeted $200 billion.
Source : iitrade.ac.in