Exports down by over 33 per cent in April, sharpest in 14 yrs

New Delhi, June 1 (PTI) The global downturn has taken the
wind out of the sails of India's exports, which fell the most
in 14 years in April, by 33.2 per cent, over the same month
last year, while domestic slowdown led to imports dropping by
36.6 per cent in the same period.

Exports dropped for the seventh month in a row, this time
to USD 10.74 billion, in April 2009-10, from USD 16.08 billion
a year ago.

An over 58 per cent decline in oil import led to a sharp
fall in overall imports, resulting in a narrow trade deficit
of USD five billion in April, against USD 8.7 billion a year
ago, according to official figures released here Monday.

"Our target is to make sure that at least we have flat
growth in exports," Minister of State for Commerce and
Industry Jyotiraditya Scindia said after taking charge.

After an impressive growth rate of over 30 per cent in
the first six months of the fiscal 2008-09, exports started
declining since October.

In 2008-09, exports grew by a meagre 3.4 per cent to USD
168.7 billion.

"...this decline would continue till September and we
hope that thereafter, we would be able to see a consolidation
and improvement in exports," Commerce Secretary G K Pillai
said.

Oil imports in April contracted by 58.5 per cent to USD
3.6 billion, while the non-oil inbound shipments too dropped
by 24.6 per cent to USD 12.1 billion.

Pillai also said that exports in 2009-10 would remain
in the range of USD 170 billion.

"(With) the rising oil product prices, the trade deficit
for the current fiscal would remain at USD 100 billion
compared to last year's USD 120 billion," the Commerce
Secretary said.


Meanwhile, the Federation of Indian Export Organisations
(FIEO) said inventories with foreign buyers are getting
exhausted and exporters have started getting orders.

"...inventories are getting over and orders are
increasing. Demand for low-price articles is increasing but
there are still constraints in the middle and high class
segments," FIEO Director General Ajay Sahai said. PTI RR
AM
NNNN






The information contained in this electronic message and any attachments to this
message are intended for the exclusive
use of the addressee(s) and may contain proprietary, confidential or privileged
information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please
notify the sender immediately and destroy
all copies of this message and any attachments contained in it.