On the heels of encouraging second quarter gross domestic product (GDP) growth numbers, the foreign trade scenario continues to remain lacklustre, even as the pace of decline in the growth of exports and imports slowed in October, the latest month for which figures were released here on Tuesday.
Exports registered a decline of 6.6 per cent at $13.19 billion in October 2009 against $14.13 billion in the corresponding month of 2008, while cumulatively the decline in exports remains at a higher level of 26 per cent at $91 billion during April-October 2009, against $123 billion in the corresponding months of 2008.
Import growth during October 2009 at $21.9 billion saw a decline of 15 per cent against $25.8 billion in October 2008, while the cumulative growth in imports during the first seven months of the current fiscal at $148.36 billion saw a negative growth of 29.6 per cent, against $210.86 billion in the corresponding months of 2008.
Officials in the Commerce Ministry concede that the relatively smaller decline in exports in October as compared with the high pace of double-digit decline in the previous months shows that in the months ahead the export juggernaut would gain traction to end the third quarter on a small positive note.
Echoing similar optimism, the Federation of Indian Export Organisation (FIEO) President, Mr. A. Saktivel, said the continued deceleration in negative export growth augurs well and that he is hopeful of a positive performance from January. This is predicated on the positive developments in the US and Europe, the twin general currency area which constitute the bulk of India's merchandise goods export destinations. He asked for immediate revision in duty drawback rates to provide the much-needed price competitiveness to Indian exporters particularly when competitors from the sub-continent and also from China have been heavily subsidising theirs.
On the import front, even as oil prices have been firming up in recent months, the country's oil imports during October 2009 at 6.6 billion were 9.3 per cent lower than such imports valued at $7.28 billion in October 2008.
Cumulatively, oil imports during April to October 2009 at $42.86 billion were 39.3 per cent lower than such imports valued at $70.57 billion in the comparable months of 2008.
Non-oil imports at $15.38 billion in October against $18.58 billion in October 2008 saw a decline of 17.2 per cent, while cumulatively their imports of $105.5 billion during April-October 2009 were 24.8 per cent lower than the level of such imports valued at $140.29 billion in April-October 2008.
The relatively high decline in imports as also exports helped in pushing down the country's trade deficit drastically from a level of $87.82 billion during April to October 2008 to $57.31 billion during the seven months of the current fiscal.
Source : Business Line