March exports below $12 bn, imports dip by 37%

India's exports in March fell below $12 billion, showing negative growth for the sixth month in a row, as demand for merchandise slumped in the world's major economies, which are battling recession.

The country's imports too continued to move southwards in the last month of 2008-09, dipping by 37 per cent.

"In March we have the provisional (exports) figures. It is under $12 billion," Commerce Secretary G K Pillai said today, adding "so we are seeing the same trend of decline."

Exports in March 2008 were valued at $16.28 billion.

He said the growth rate of exports at about 35 per cent in the first half 2008-09 would not be maintained in 2009-10. "This year obviously we will not grow that much," he told reporters on the sidelines of an IIFT meet here.

Pillai, however, said India's total exports for fiscal 2008-09 are likely to be about $170 billion, higher than 2007-08 overseas shipments. The country's exports in 2007-08 were valued at $162 billion.

He added that imports declined by 37 per cent in March. "Decline (in imports) is more than exports...It is about 37 per cent," he said.

India's import bill in March 2008 was $23.17 billion, about 35 per cent more than in March 2007.

The secretary said the new Foreign Trade Policy to be announced by the new government would boost exports.
  For fiscal 2009-10, Pillai said the negative growth in exports would continue up to September.

"The import decline will also be there in 2009-10," he said, adding imports also depend on the petroleum prices.

Meanwhile, former RBI Governor C Rangarajan said the country's exports would pick up in the second half of the calendar year 2009.

"I think export sector will start picking up in the second half of the calendar year and as a consequence of that the economy will start reviving," he said.

India's exports are on decline since October 2008, when it dipped by 12.1 per cent for the first time in five years. Imports, too, entered into negative territory in January when it dipped by over 18 per cent while in February the fall was 23.3 per cent.