Goods exports fell 21.06 per cent in March — the steepest drop in the past fiscal year — to $23.95 billion, as demand from key markets such as the European Union, China and Japan remained low, painting a grim picture for the future.

The trade deficit, an area of primary concern for the Centre, widened to $11.79 billion, despite imports falling 13.44 per cent to $35.74 billion.

Import of gold, however, almost doubled to $4.98 billion during the month as the restrictions imposed last year were withdrawn.

The export decline was seen across sectors, such as gems & jewellery, petroleum products, handicrafts, engineering goods, electronics and agricultural produce, according to data released by the Commerce Ministry on Friday.

Overall exports in 2014-15 declined 1.23 per cent to $310.5 billion compared with $314.41 billion in the previous fiscal year, a direct result of the decline in outbound shipments for four consecutive months (since December 2014).

‘Stand by exporters’ Exporters want the government to come up with supportive measures.

“Such a steep fall in March is quite serious and is a pointer to the problems in global markets, which are in the middle of a slowdown. Our cost of manufacturing coupled with transaction costs must come down and the Government needs to stand by exporters,” said Anupam Shah of the Engineering Export Promotion Council of India.

The Federation of Indian Export Organisations wants the government to implement the interest subvention scheme at the earliest. “High cost of credit also played a role in the fall in exports,” said SC Ralhan, President of the exporters’ association.

The poor export performance over the past few months has resulted in the country missing the target of $325 billion the second time in a row.

Oil price impact Imports during the year fell 0.59 per cent to $447.54 billion, mainly due to a drop in the oil bill as global oil prices contracted. The trade deficit widened to $137.01 billion in 2014-15, compared with $135.79 billion last year.

Oil imports in March, at $7.41 billion, were 52.68 per cent lower year on year. During the April 2014-March 2015 period, they were valued at $138.26 billion, 16.09 per cent lower than a year earlier.

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