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| Exports fell 26% in July: Trade secy |
| BS Reporter / New Delhi Aug 19, 2009, 01:12 IST |
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Continuing a downward trend for the tenth month, export of goods from the country witnessed a decline of over 26 per cent with global markets still under the grip of slowdown.
“Exports were 26 per cent lower as compared to July last year. The bad run continues,” said Commerce Secretary Rahul Khullar. According to early estimates by the commerce ministry, July exports were recorded at $12.5 billion, compared to $17 billion in the corresponding month a year ago.
Cumulatively, exports fell 32 per cent in dollar terms in the April-July period in 2009 to $49.25 billion from $72.5 billion in the same period last year.
Imports that slid for the seventh successive month recorded around 36 per cent fall narrowing the trade deficit to $5.8 billion, compared to $12 billion in July 2008. According to commerce ministry estimates, imports were down to $18.3 billion in July compared to $29 billion imports recorded in July 2008.
The global economic slowdown had pushed the export growth in the country into the negative territory in October last year. This was followed by imports taking a dip two months later in January, mainly on account of falling crude oil prices that were ruling at record levels during the same period last year.
The Foreign Trade Policy, to be announced on August 27, is likely to announce incentives for the country’s exporting community since revival in global demand is still not visible.
Merchandise exports were down by about 28 per cent at $12.8 billion in June, compared to $17.7 billion recorded in June last year.
Imports, too, were down in June by 29 per cent at $18.9 billion largely due to an over 50 per cent slump in the crude oil import bill.
Exporters are demanding that rates under the duty entitlement passbook scheme should be enhanced further as this would help in keeping export prices competitive and the scheme be extended beyond December 31, 2009.
Among other demands are extension of the interest subvention scheme to all sectors, compensation for inland freight cost be provided to exporters and exemption from the service tax.
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