New Delhi, July 16 The country’s export scenario in the coming days may appear dim with the continued collapse of trade flows of the developed countries, its major markets.
According to data released in Paris by the Organisation for Economic Cooperation and Development (OECD), the unprecedented drop in merchandise trade volumes of the Group of Seven (G7) countries of the last quarter of 2008 persisted in the first quarter of 2009.
What is disturbing, OECD said, is when compared year-on-year, the steep rate of decline, already observed for fourth quarter of 2008, reached double-digit levels in the first quarter (January-March) 2009 for almost all countries.
Compared with the previous 12 months, imports of the US declined 19 per cent in the first quarter of 2009.
Japan’s imports
Japan too appears to be particularly hit by the current crisis with a 13-per cent drop in imports in the first quarter of 2009.
Both the US and Japan continue to be important export destinations even as India is pitching its hope on the latter’s markets in tune with its ‘Look East Policy’.
The latest OECD figures, updated till April 2009, show that the US’ import volume plunged from $132.8 billion in January to $121.4 billion in April, while that of Japan from $50.1 billion to $42 billion in the same period. The import volume of G7 countries comprising Canada, France, Germany, Italy, Japan, the UK and the US together fell from $405.1 billion in January to $368.5 billion in April.
Coinciding with the continued negative import growth in major industrial countries, India’s exports to these destinations suffered a severe jolt. This was also confirmed in a written answer in the Rajya Sabha by the Minister of State for Commerce and Industry, Mr Jyotiraditya Scindia, when he said that India’s monthly merchandise exports fell 16.8 per cent in January, 21.7 per cent in February and 33.3 per cent in March 2009.
Govt Monitoring
In fact, provisional figures for the subsequent two months, which mark the inaugural months of the current fiscal, show that India’s merchandise exports plummeted by 33.2 per cent in April and 29.2 per cent in May.
However, the Minister said the Government was monitoring the different export sectors and need-based measures were taken keeping in view the financial implications, over and above what had been announced in the Budget.
Source : Business Line