Exports drop to 5.45%; trade deficit narrows

India's exports dropped 5.45 percent to $25.07 billion in June, falling sharply for the second consecutive month due to weak demands in North America and European countries, government data showed Friday.

Imports also fell sharply, leading to narrowing in trade deficit. Imports dropped by 13.46 percent to $35.37 billion in June, leaving a trade deficit of $10.3 billion, according to data released by the commerce and industry ministry.

This is the lowest level of trade deficit in 15 months. In May, the trade deficit was $16.26 billion.

Reuters

Both exports as well as imports declined in May also. Exports had fallen by 4.16 percent to $25.68 billion and imports declined by 7.36 percent to $41.94 billion.

Commerce Secretary S.R. Rao blamed weak demands in the US and European countries for the recent slowdown in India's exports.

Rao said the world trade was passing through a difficult phase, which was reflected in India's trade data.

"In the past two-three months, there has been a tremendous dip in world trade. This will continue over the next one to two years," Rao said.

The first three months' data indicate exports are likely to remain sluggish in the coming months and the whole-year target might fall substantially short.

The government has set a target of 20 percent growth in exports in the fiscal 2012-13.

Exports had increased by 20.94 percent to $303.71 billion in the financial year ended March 31, 2012, surpassing the government's target of $300 billion.

The cumulative value of exports during April-June 2012 period declined by 1.7 percent to $75.20 billion. During this period imports dropped by 6.10 percent to $115.26 billion.

In the first quarter of the current financial year, major exports in absolute terms were: petroleum $12.9 billion, engineering goods $14.6 billion, gems and jewellery $10 billion, drugs $2.1 billion and readymade garments $3.2 billion.

The main imports in absolute term during April-June period were: petroleum $41.5 billion, gold and silver $9.4 billion, machineries $8.5 billion, pearls $4.6 billion and electrical goods $7.1 billion.

IANS


Updated Date: Dec 20, 2014 11:33 AM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See