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Merchandise exports in February contracted 15 per cent to $21.5 billion, compared to $25.35 bn in the same month last year, due to a decline in export of petroleum products, iron ore, cereals and oilmeal. It is the biggest monthly fall in 2014-15.
This has raised concern that exports might not reach the set target of $340 bn for the financial year, ending March 31.
Total export between April 2014 and February 2015 was $286.6 bn, up a meagre 0.8 per cent compared to $284.1 bn in the corresponding period of 2013-14, according to data issued on Friday by the ministry of commerce and industry.
Imports in February also declined, by 15.7 per cent to $28.4 bn as against $33.7 bn in February 2014. Cumulative imports during April 2014-February 2015 reached $411.8 bn, about 0.7 per cent higher than $408.9 bn in the same period last year.
The silver lining was narrowing of the monthly trade deficit, to $6.85 bn from a peak of $16.9 bn in November 2014. However, the total trade deficit in April 2014-February 2015 was $125.2 bn, compared to $124.8 bn in the same 11 months of 2013-14.
Non-oil imports grew 11.7 per cent to $22.9 bn from close to $20 bn in February last year. Total non-oil imports rose 8.1 per cent to almost $281 bn, compared to $259.8 bn in the earlier comparative period. Exporters have been constantly urging the government to bring in the new Foreign Trade Policy, so that they could offset some of the demand-side problem.
"This (February data) is more shocking than expected. Some of the conventional markets are not doing well. Except for the US, other traditional markets like the European Union and Japan are giving mixed signals. Currency volatility is also an issue, as a result of which, we could also not make a dent in the Russian markets," said Ajay Sahai, director-general, Federation of Indian Export Organisations.
HEADING SOUTH
India's trade deficit since April 2011 (in $ bn)
