Exports contract for 16 month in a row, shrinks by 5.47% in March

India’s merchandise exports extending its decline for the sixteen months in row, contracted by 5.47 percent to $22718.69 million in the month of March, as shipments of petroleum and engineering products shrunk sharply due to tepid global demand. Imports too contracted by 21.6% to $27789.56 million in the same month which helped the trade deficit to narrow for the third straight month in March to $5070.87 million, compared with $11396.17 million in March 2015 and the lowest in five years. The trade deficit for April-March, 2015-16 was estimated at $53859.16 million as compared to $68558.53 million over same period last year, lower by 21.44 per cent.

As per the data released by the commerce ministry, exports during March, 2016 were valued at $22718.69 million, 5.47 per cent lower in Dollar terms compared to of $24032.55 million in March 2015. However in rupee terms it was 1.45 per cent higher at Rs 152264.96 crore, than the level Rs 150082.80 crore during March, 2015. Cumulative value of exports for the period April-March 2015-16 was $261136.80 million, down by 15.85 percent as against $310338.47 million, while in rupee term it stood at Rs 1708841.43 crore, down 9.89 per cent at Rs. 1896348.40 crore over the same period last year.

Imports during March, 2016 were valued at $27789.56 million in dollar terms, 21.56 per cent lower over the level of imports valued at $35428.72 million in March, 2015. In rupee terms imports were valued at Rs 186250.88 crore, 15.82 per cent lower than Rs 221251.65 crore in the same period last year. Cumulative value of imports for the period April- March 2015-16 in dollar terms was $379596.17 million, as against $448033.42 million in same period last year, registering a negative growth of 15.28 per cent. In rupee terms, the imports for the period April- March 2015-16 stood at Rs 2481367.22 crore, down by 9.34 per cent as compared to Rs 2737086.58 crore in the same period last year.

Oil imports which accounts for 31 percent of the total imports, dropped by 35.30 per cent during March 2016 at $4799.96 million against $7418.51 million in the corresponding period last year. Oil imports during April- March 2015-16 were valued at $82662.26 million which was 40.24 per cent lower than the oil imports of $138325.50 million in the corresponding period last year. Non-oil imports during March, 2016 were estimated at $22989.60 million which was 17.92 per cent lower than non-oil imports of $28010.21 million in March, 2015. Non-oil imports during April- March, 2015-16 were valued at $296933.91 million which was 4.12 per cent lower than the level of such imports valued at $309707.92 million in April- March 2014-15.

Although exports for the year-ending March were the weakest since 2010-11, down 15.85% from a year ago, the narrowing trade gap showed that India the world's third-largest crude importer has been a net beneficiary of the collapse in oil prices.