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Goods exports from India fell for the sixth straight month in May by 20.19 per cent to $22.34 billion as the slowdown in China added to the woes of the already slowing global economy.
Imports during the month were 16.52 per cent lower at $ 32.75 billion, mainly due to a sharp drop in the petroleum import bill.
Trade deficit narrowed to $10.4 billion in the month against $11.23 billion in May 2014, according to data released by the Commerce Ministry.
Exporters have demanded a stimulus package stating that the continuous decline in exports due to shrinking of traditional markets, and now of emerging economies, could severely impact their fortunes.
FIEO President SC Ralhan said: “Emerging economies, particularly of Asia, are also contracting due to slowing down of China. With such a steep decline, FIEO expects the government to act fast to arrest it.”
Aggressive marketing According to engineering exporters’ body EEPC, nothing short of a stimulus package would help Indian exporters regain their competitiveness across the major markets of Europe, the US, South-East Asia and Africa.
“The stimulus can be in the form of interest subvention, technology upgradation fund and fast refund of local taxes,” said Anupam Shah, Chairman, EEPC.
Exporters’ body FIEO has also sought introduction of an export development fund for aggressive marketing.
Fall in global oil prices have contributed significantly to the overall decline in exports during the month under review as exports of petroleum products fell 59.10 per cent to $2.42 billion. Other major export items, including engineering goods, electronic goods, gems & jewellery, cotton yarn and a number of agriculture items, also declined.
Imports of a number of items, including petroleum products, transport equipment, chemicals, dyes, silver precious and semi-precious stones and vegetable oil, declined in May 2015.
Gold imports increased 10.47 per cent to $2.4 billion continuing to respond to an easing of import restrictions by the Government.
While petroleum and crude imports during the month was 40.97 per cent lower at $8.53 billion, non-oil imports were 2.24 per cent lower at $24.21 billion.
Cumulative value of exports for April-May 2015-16 was $44.40 billion which was 17.21 per cent lower than that in the comparable period of the previous fiscal.
Cumulative value of imports for the period April-May 2015-16 was 12.21 per cent lower at $65.80 billion.
Trade deficit for April-May 2015-16 was at $21.39 billion which was higher than the deficit of $21.32 billion during April-May, 2014-15.
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