India's exports fell for the eighth month in a row in May, this time by 29.2 per cent, due to global downturn, while imports dropped by 39.2 per cent, reflecting slowdown in domestic consumption.
As the country's total imports, largely influenced by a whopping decline of 60.6 per cent in oil imports, showed a faster pace of contraction than exports, the trade deficit more than halved to $5.20 billion in May 2009-10 from $11.13 billion in the same month last fiscal.
Exports dropped to $11.01 billion in May from $15.55 billion in the same month last year, according to the government data released today.
"It is not surprising (decline in exports). This reflects recession in global economies," Chief Economist of rating agency CRISIL Subir Gokarn said.
Federation of Indian Export Organisations (FIEO) President A Sakthivel added that the decline would be arrested by September and from October figures would be positive.
"Overall exports will be in the range of $175-180 billion during the fiscal. We would see double-digit growth from January 2010 onwards," he said.
Exports during the April-May period dipped by 31.2 per cent to $21.75 billion from the cumulative shipments of $31.62 billion in the first two months of the previous fiscal.
Imports dipped to $16.21 billion in May from $26.68 billion over the year-ago period. Imports during the first two months of the current fiscal were $31.95 billion against $51.50 billion.
The trade deficit during April-May 2009-10 was $10.20 billion against $19.88 billion.
Oil imports during May 2009 plunged by 60.6 per cent to $4.13 billion from $10.49 billion in the corresponding period of the previous year. Non-oil imports during the month declined by 25.4 per cent to $12.07 billion from $16.18 billion.
During April-May 2009-10, oil and non-oil imports dipped to $7.76 billion and $24.19 billion, respectively, compared to the same period in the previous year.
Oil and non-oil imports in April-May 2008-09 were $19.24 billion and $32.26 billion respectively.
Overseas shipments grew by a meagre 3.4 per cent to $168.7 billion in 2008-09 after the global slowdown began to pinch in the second half of the previous fiscal.
