For the eighth month in a row, exports were down 10.3% in July to $23.13 billion, hit by global slowdown and dip in crude oil prices that impacted the value of petroleum products.
As merchandise shipments continue to fall since last December, a top official in Commerce Ministry on Tuesday attributed the declines to sharp fall in fuel prices overseas, which led to a dip in petroleum product exports.
Claiming that exports to the US are doing well, Commerce & Industry Ministry additional secretary J K Dadoo said trading with the European Union has been impacted due to economic woes of the 27-nation bloc.
"Our exports are doing well, while the European Union is still under some pressure because of the ongoing economic pressure there, exports to the US have picked up," Dadoo told a seminar organised by Dun & Bradstreet.
"Petroleum prices have been falling and that has affected our exports," he added.
It can be noted that in Q1, Reliance, which alone contributes over a quarter of the country's exports reported an over 40% plunge in exports.
Similarly, Essar Oil too reported decline in petroleum products exports during the quarter as oil prices across the globe were falling, following demand slump in the world's largest oil consumer China and increased shale gas production in the US, which is the second largest oil market globally.
For the eighth month in a row, exports were down 10.3% in July to $23.13 billion, hit by global slowdown and dip in crude oil prices that impacted the value of petroleum products.
In July 2014, the merchandise exports had amounted to $25.79 billion.
The last time exports registered a positive growth was in November last, when shipments expanded 7.27%.
Low prices of crude, metal and commodity, dip in manufacturing and slowdown in western markets are some of the factors attributing to the fall.
There has been increase in demand for petroleum-based products in the domestic markets because of the deregulation of diesel prices.
The oil price deregulation had brought private refiners such as Reliance Industries and Essar Oil on par with the state-owned refiners who were earlier selling diesel at subsidised rates.
The move has helped private firms to reopen their retail fuel outlets and ramp up domestic retail sales of petrol and diesel.
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