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Exports continues the decline for the15th month in a row, down 5.66% in February

16 Mar 2016 Evaluate

The poor run of the Indian trade continued for the 15th month in a row, with exports dipping 5.66 percent in February to $ 20738.60 million, against $21983.43 million in February 2015, due to contraction in shipments of petroleum and engineering goods amid tepid global demand. However, the trade deficit, fell to near five-year low of $ 6541.82 million during February 2016, as compared to $ 6741.95 million in February 2015, as imports too slowed down. Imports declined by 5.03 percent to $ 27280.42 million last month. The trade deficit - difference between imports and exports - was the lowest since March 2011 when it was $ 5.6 billion.

As per the data released by the commerce ministry, exports during February, 2016 were valued at $ 20738.60 million, 5.66 per cent lower in Dollar terms compared to of $ 21983.43 million in February 2015, or Rs 141515.41 crore which was 3.77 per cent higher in Rupee terms than the level Rs 136379.94 crore during February, 2015. Cumulative value of exports for the period April-February 2015-16 was $ 238418.11 million, down by 16.73 percent as against $ 286305.92 million, while in rupee term it stood at Rs. 1556576.47 crore, down 10.86 per cent at Rs. 1746265.60 crore over the same period last year.

Imports during February, 2016 were valued at $ 27280.42 million, down 5.03 per cent in Dollar terms over the level of imports valued at $ 28725.38 million in February, 2015, while in rupee term the imports was of Rs 186155.30 crore 4.46 per cent higher from Rs. 178205.35 crore in same month last year. Cumulative value of imports for the period April-February 2015-16 was $ 351806.61 million as against $ 412604.70 million registering a negative growth of 14.74 per cent, while in rupee term it was Rs 2295116.34 crore compared to Rs 2515834.93 crore, down 8.77 per cent in Rupee terms over the same period last year.

Oil imports during February, 2016 were valued at $ 4767.69 million which was 21.92 per cent lower than oil imports valued at $ 6106.33 million in the corresponding period last year. Oil imports during April-February, 2015-16 were valued at $ 77862.30 million, down 40.52 per cent from $ 130906.99 million in the corresponding period last year. Non-oil imports during February, 2016 were estimated at $ 22512.73 million, down modestly by 0.47 per cent than non-oil imports of $ 22619.05 million in February, 2015. Non-oil imports during April-February, 2015-16 were valued at $ 273944.31 million, which was 2.75 per cent lower than the level of such imports valued at $ 281697.71 million in April-February, 2014-15. 

Besides a global slowdown, the severe fall in exports is attributed to a decline in global commodity prices. The government had earlier set a $300 billion export target for 2015-16, but there was talk of revising it downwards to $260 billion, even then as much as $22 billion worth of goods need to be exported in March to meet the truncated target.

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