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Exports of goods fell for the 10th straight month in September, plunging 24.33 per cent to $21.84 billionas demand from key markets continued to shrink.
The decline was spread across major sectors such as petroleum goods, readymade garments, electronics, engineering goods, gems & jewellery, chemicals, leather and agricultural products, according to quick estimates released by the Commerce Ministry on Thursday.
Fall in imports was sharper at 25.42 per cent to $32.32 billion during the month. As a result, trade deficit narrowed to $10.47 billion in September 2015 compared to $14.47 billion in September 2014.
The drop was prominent in sectors such as petroleum, gold and silver, project goods, transport equipment, iron and steel, coal and coke, transport equipment and precious and semi-precious stones, the official release added.
The continuing fall in exports is in line with the lowering of world trade growth projection for 2015 by the World Trade Organisation to 2.8 per cent from 3.3 per cent estimated in April this year, due to falling import demand from China, a drop in commodity prices including oil, and exchange rate fluctuations.
SC Ralhan, President, FIEO, said: “There needs to be an immediate re-introduction of interest subvention scheme, an expansion of benefits under merchandise export incentive scheme (MEIS) and a reduction of transaction costs by reducing procedural complexities and paper work.” The government is yet to implement the interest subvention scheme for exporters, provided for in this year’s Budget, which would result in a lowering of interest rates for exporters.
Exports in April-September 2015-16 were $132.93 billion, 17.63 per cent lower than the same period last year. Imports during the period stood at $200.93 billion, 14.16 per cent lower than the same period last year.
Trade deficit for April-September 2015-16 was estimated at $ 67.99 billion, which was lower than $72.69 billion recorded during April-September, 2014-15.
Oil imports of $6.62 billion during September, 2015, were 54.53 per cent lower than the same month last year. During April-September, 2015-16, oil imports worth $48.12 billion were 41.58 per cent lower than oil imports in the corresponding period last year.
Non-oil imports during September, 2015 at $ 25.69 billion were 10.68 per cent lower than imports in September, 2014. The fall in non-oil imports during April-September, 2015-16 at $152.80 billion was much lower at 0.72 per cent.
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