For the fifth consecutive month in 2012-13, lacklustre global demand hit India's exports which declined by 10.78% to $ 23.69 billion in September. Imports into the country, however, went up by 5.09% to $ 41.78 billion widening the trade deficit to a 16-month high of $ 18.09 billion.
Cumulatively between April and September this financial year, exports fell by 6.79% to $ 143.6 billion from $ 154.15 billion in the same period last year. "The markets in Europe, the US and Japan are still not showing healthy growth," exporters body FIEO president Rafeeque Ahmed informed.
Imports during the first half of the financial year contracted by 4.36% to $ 232.93 billion. Trade deficit during the period stood at $ 89.25 billion from $ 89.39 billion in April-September 2011. The trade deficit is a cause of concern as it leads to increase in the country's current account deficit.
Trade figures were released a day before industrial output data for the month of August is slated to be out. August industrial figures are likely to be low as shown by core sector which rose just 2.1% in August against 3.8% a year ago. Eight core sector industries have almost 38% weight in the Index of Industrial Production.
Industrial output fell 0.1% till July this fiscal, against a growth of 6.1% in the corresponding period of 2011-12.
If trade figures are any indication, industrial growth may not improve much in September as well. This is so because overseas demand has not improved much and imports rose largely because of oil products.
Oil imports during September increased by 30.74% to $ 14.09 billion from $ 10.77 billion in the corresponding period last year. However, non-oil imports during the month under review dipped 4.46% to $ 27.68 billion, reflecting problems in industrial sector in the country.
While oil imports during April-September 2012-13 grew by 6.78% to $ 80.78 billion, non-oil imports contracted by 9.38% to $ 152.14 billion.
"The contraction in global demand and deceleration in manufacturing are primary reasons for decline in exports," said Ahmed.
However, the situation may improve in the second half of the fiscal, he added
