JOIN USThe country’s exports declined by 29.2 per cent in May this year while imports dropped by 39.2 per cent — indicating sluggishness in domestic consumption.
Decling for the eighth month in a row, this has given rise to expectations that budget 2009-10 is likely to unveil series of measures to boost exports.
“The continuous fall in exports is a matter of concern. There is no sign of revival in the exports demand yet. We sincerely hope that there will be sops for exporters in the coming Budget,” Commerce Secretary Rahul Khullar said.
Federation of Indian Export Organisations (FIEO) President A Sakthivel said “This is alarming, though much of it is due to global contraction in demand. We are looking forward to the budget with much hope to provide competitiveness and relief to the export sector.”
He apprehended that there could be increase in job losses, if the decline was not arrested immediately with positive intervention. Latest trade data shows that for the eighth month in a row country’s export declined to $11.01 billion in May this year from $15.55 billion in the same month last year.
Drop in import
Country’s imports dropped by 39.2 per cent for the fifth consecutive month to $16.21 billion in May from $26.68 billion in the same month last year.
Cumulatively exports during April-May this year stood at $21.753 billion as against $31.626 billion in the same period of the previous fiscal posting a negative growth of 31.2 per cent.
Similarly, imports during April- May 2009 touched $31.959 million billion as against $51.507 billion in the corresponding period of the previous fiscal registering a negative growth of 38 per cent.
The trade deficit for April- May is estimated at 10206 million dollars, which was lower than the deficit of 19880 million dollars during corresponding period of the previous fiscal.