Growing global eco uncertainties: export dips 5.45 pc in June

Reflecting slowdown in the domestic economy, imports too dipped sharply by 13.6 per cent to USD 35.37 billion from USD 40.8 billion in June 2011, resulting in a narrower trade deficit of USD 10.3 billion during the month.

Dismal export performance comes on the back of India's economic growth slipping to nine-year low of 6.5 per cent in 2011-12 and subdued industrial output in the first two months of the current fiscal.

"It is quite distressing that from the past two months exports performance was not good. But world over there has been a tremendous dip in trade and this is going to be (the trend) in at least next one or two years," Commerce Secretary S R Rao told reporters here.

According to the provisional data released today, exports during April-June 2012 dipped by 1.7 per cent to USD 75.2 billion from USD 76.5 billion in the same period last fiscal.

Explaining reasons about the decline, Rao said: "In euro zone we do not see any finality. The US market is also contracting and so is Chinese. Japan is again showing some distress. These are signs of recession all over the world."

Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said the contraction in global demand and deceleration in manufacturing are primary reason for decline in exports.

During April-June 2012, imports declined by 6.10 per cent 115.26 billion from USD 122.74 billion in the same period last year. Trade deficit during the period too dipped to USD 40.06 billion from USD 46.3 billion in April-June 2011. MORE