India’s merchandise exports shrink for 14th straight month in January

16 Feb 2016 Evaluate

Amid weak global commodity prices, India’s merchandise exports extending its decline for the fourteen months in row, plunged by 13.6 per cent in January 2016 at $21.07 billion as against $24.39 billion in January last year. The significant fall in exports is attributed to weak global demand and steep fall in shipment of petroleum products and engineering goods. Apart from this, the decline was spread across sectors such as readymade garments, leather products, chemicals, rice and cereals and marine products. The last time Indian exports registered a positive growth was in November 2014, when shipments had expanded at a rate of 7.27 percent.

Imports too declined by 11 percent to $28.71 billion for January, thus narrowing the trade gap to $7.63 billion from $7.87 billion recorded in the same month of 2015. The trade deficit during April-January 2015-16 too has narrowed to $106846.68 million as against $119556.83 million in the same period last fiscal.

As per the data released by the Commerce Ministry, Indian exports during January, 2016 were valued at $21075.57 million in dollar terms, 13.60 per cent lower than the level of $24393.58 million during January, 2015. In rupee terms the exports stood at Rs 141738.07 crore for the month against Rs. 151791.26 crore in the same month last year, showing a decline of 6.62 per cent. Cumulative value of exports for the period April- January 2015-16 was $217679.51 million as against $264322.49 million, registering a negative growth of 17.65 per cent in dollar terms. In rupee terms it stood at Rs 1415061.06 crore down by 12.10 per cent against Rs 1609885.66 crore in the same period last year.

Meanwhile, imports during January, 2016 were valued at $28714.50 million in dollar terms, 11.01 per cent lower over the level of imports valued at $32265.37 million in January, 2015. In rupee terms imports were valued at Rs 193111.64 crore, 3.82 per cent lower than Rs 200774.18 crore in the same period last year. Cumulative value of imports for the period April-January 2015-16 in dollar terms was $324526.19 million, as against $383879.32 million, registering a negative growth of 15.46 per cent. In rupee terms, the imports for the period April- January 2015-16 stood at Rs 2108961.04 crore, down by 9.78 per cent as compared to Rs 2337629.58 crore in the same period last year.

Oil imports which accounts for 31 percent of the total imports, dropped by 39.01 per cent during January 2016 at $5026.41 million against $8241.18 million in the corresponding period last year. Oil imports during April-January, 2015-16 were valued at $73094.61 million which was 41.43 per cent lower than the oil imports of $124800.66 million in the corresponding period last year. Non-oil imports during January, 2016 were estimated at $23688.09 million which was 1.40 per cent lower than non-oil imports of $24024.19 million in January, 2015. Non-oil imports during April-January, 2015-16 were valued at $251431.58 million which was 2.95 per cent lower than the level of such imports valued at $259078.66 million in April-January, 2014-15.

Reserve Bank of India governor Raghuram Rajan has resisted pressure from exporters and policy makers to devalue the currency to support exports. Finance minister Arun Jaitley, who will present his annual budget on February 29, could announce incentives to boost exports, as India’s textile sector faces competition from Bangladesh and Vietnam.

India’s merchandise exports shrink for 14th straight month in January

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