Exports dip 4.16% in May on global slowdown,manufacturing woes

According to the provisional data released today by the Commerce Ministry, imports dipped by a sharper pace of 7.36 per cent to USD 41.9 billion.

The contraction in imports reflects slowdown in fresh investments as inward shipments of plant and machinery fell by 8 per cent during the month under review.

The trade deficit narrowed to USD 16.2 billion in May, from USD 18.4 billion a year ago.

Dismal export performance comes at a time when India's economic growth slipped to 9-year low of 6.5 per cent in 2011-12 and flat industrial output growth in April.

Commerce Secretary S R Rao has said that contraction of demand in India's traditional markets particularly in Euro zone economies was hurting exports.

"The decline in exports is mainly due to the global slowdown and deceleration in domestic manufacturing. Many countries are facing huge setback in exports and India is no exception to it," Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said.

During April-May 2012, India's shipments contracted by 0.69 per cent to USD 50.13 billion from USD 50.48 billion in the same period last year.

Decline in exports in May were particularly witnessed in top exporting commodities like petroleum products (-26 per cent), engineering goods (-15.67 per cent), gems and jewellery (-9 per cent) and readymade garments (-15.82 per cent). MORE