Business
India's exports dipped deeper in the negative zone recording a decline of 21% in March, the biggest fall in the last six years, pulling down the total shipment for 2014-15 to US $310.5 billion, missing the target.
Updated : Mar 19, 2018, 06:52 AM IST
India's exports dipped deeper in the negative zone recording a decline of 21% in March, the biggest fall in the last six years, pulling down the total shipment for 2014-15 to US $310.5 billion, missing the target.
Exports have been on downward spiral since December last year. The previous biggest decline in export was in July 2009, when it dipped by 28.4%. Falling exports and an increase in gold imports have widened the trade deficit to four-month high of US $11.79 billion in March.
Gold imports in March almost doubled to US$ 4.98 billion. Falling exports of petroleum products (59.5 %), gems and jewellery (8.36%), chemicals (5.36%) and engineering goods (2.5%) have led to the sharp contraction in March. These sectors contribute about 70 % to the country's total exports.
In March, exports decreased to US$23.95 billion compared with US$ 30.34 billion in the a year-ago period, as per the Commerce Ministry's data. Compared with the previous fiscal, exports dipped by 1.23% in 2014-15 .
The government had fixed the target at US$340 billion for 2014-15. In 2013-14 too, total merchandise shipments stood at US$314.4 billion, missing the annual target of US$ 325 billion. Imports contracted by 13.44% to US$ 35.74 billion in March.
During 2014-15, imports dipped by 0.59% to US$447.5 billion in 2014-15, leaving a trade deficit of US$137 billion. Industry experts said government will have to give a special thrust on enhancing exports.
"We have to move at higher end of the value chain. The figures are not good. We are still exporting lower-end products," FIEO Director General Ajay Sahai said. Oil imports declined by 52.68% to US$7.41 billion in March. During 2014-15, it dipped by 16.09% to US$138.26 billion.
An official said the sharp decline in global oil prices has impacted India's petroleum exports, which account for 22% of total shipments.