Exports decline by 27 pc and imports by 29 pc in June 2009

As the country’s total imports, largely influenced by a whopping decline of 50.6 per cent in oil imports, showed a faster pace of contraction than exports, the trade deficit was $billion in June 2009-10 from $ 9.12 billion in the same month last fiscal.

Exports dropped to $12.81 billion in June from $17.73 billion in the same month last year, according to the government data released on Monday.

Decline to continue
Federation of Indian Export Organisations (FIEO) Director-General Ajay Sahai said the declining trend is likely to continue for some more months.

Federation of Indian Export Organisationsacknowledged that the government cannot increase demand in the global markets but it should give incentives to exporters so that they do not lose orders. “The government should take short-term measures first and then come out with long-term policies after the global commerce shows improvement,” he said. The government is slated to unveil Foreign Trade Policy, which spells out the segments of priority in external trade and also gives incentives and disincentives, depending on the country’s needs.

Exports during the April-June period dipped by 31.3 per cent to $35.43 billion from the cumulative shipments of $ 51.54 billion in the first three months of 2008-09.

Imports impacted
Imports dipped to $18.97 billion in June from $26.85 billion over the year-ago period. Imports during the first quarter of 2009-10 dipped by 36.5 per cent to $50.92 billion from $80.18 billion.

The trade deficit during April-June 2009-10 was $15.50 billion against $28.64 billion. R M Joshi, an expert on international trade at the Indian Institute of Foreign Trade, said it would take some time for exports to revive in the country in the wake of the slowdown.

  “The demand slump in the United States  and European U nion are the  factors for the poor performance in our exports. The government should look for diversification of markets and focus more on small and medium enterprises and agricultural products,” he said.