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Exports contract 5.45% in June on global economic slowdown

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Press Trust of India New Delhi
Last Updated : Jan 25 2013 | 4:04 AM IST

Besides, reflecting slowdown in the domestic economy, imports too dipped sharply by 13.46 per cent to USD 35.37 billion, from USD 40.8 billion in June 2011, resulting in a narrower trade deficit of USD 10.3 billion for the month.

The decline in the country's shipments comes amid India's economic growth slipping to 9-year low of 6.5 per cent in 2011-12, and subdued industrial output in the first two months of the current fiscal.

"The contraction in global demand and deceleration in manufacturing are primary reason for decline in exports," Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said.

According to the data released by the Commerce Ministry today, exports during the April-June quarter of 2012-13 fiscal dipped by 1.7 per cent to USD 75.2 billion, from USD 76.5 billion in the same period last fiscal.

Commerce Secretary S R Rao has said the markets in the euro zone, the US, China and Japan are still not showing healthy growth and these are signs of global recession.

Imports during the first quarter of this fiscal dipped by 6.10 per cent to USD 115.25 billion, from USD 122.74 billion in the April-June period of last fiscal.

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Trade deficit during the quarter stood at USD 40 billion.

Experts expressed relief over narrowing trade deficit.

"Trade deficit has come down. We expect it to be under control in the coming months," international trade expert with Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said. MORE

  

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First Published: Aug 01 2012 | 4:36 PM IST

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