Exports extend the decline for 17th month in a row, down 6.74% in April

Posting a seventeenth consecutive month of fall, Indian merchandise exports fell by 6.74 percent in the month of April to $ 20568.85 million. The significant fall in exports was due to sharp fall in shipments of petroleum and engineering products amid tepid global demand. However, the imports too fell by 23 per cent, narrowing the trade deficit by 20 per cent, a five year low to $ 4844.87 million in April from $ 10992.30 million reported during the corresponding month of 2015, led by a sharp fall in gold imports due to a nationwide strike by jewellers protesting against the proposed 1 percent excise duty and a decrease in inbound oil shipments.

According to the data released by the Commerce Ministry, Indian exports in dollar terms during April 2016 stood at $20568.85 million, which was 6.74 per cent lower than the level of $22054.72 million during April, 2015. In Rupee terms the exports was valued at Rs 136720.11 crore, which was 1.21 per cent lower than the level of Rs. 138400.44 crore in the same period last year. The growth in exports has fallen for the US, the EU, China and Japan by 3.87 per cent, 0.04 per cent, 25.34 per cent and 1.10 per cent, respectively for February 2016. In April, exports declined in most major categories including petroleum products, ready-made garments, engineering goods, cotton yarn, carpet, leather, rice and cashew. However, items such as gems & jewellery, tobacco, electronic products, chemicals and pharmaceuticals posted an increase.

Meanwhile, Imports during April, 2016 were valued at $25413.72 million in dollar terms, 23.10 per cent lower over the level of imports valued at $33047.02 million in same period last year. In rupee terms imports were valued at Rs 168923.71 crore, which was 18.54 per cent lower than Rs 207380.63 crore during April 2015. The massive fall in the crude oil prices over the past year has brought down the import bill.

Oil imports which accounts for 31 percent of the total imports dropped by 24.01 per cent to $ 5655.92 million as against oil imports valued at $7442.92 million in the corresponding period last year. Non-oil imports during April, 2016 were estimated at $19757.80 million which was 22.83 per cent lower than non-oil imports of $25604.10 million in April, 2015.

The commerce ministry said that the trend of falling exports is in tandem with other major world economies. Federation of Indian Export Organisations has expressed its hope that the exports will enter the positive zone in June-July as the fall had been arrested to some extent in March and April and expect double-digit growth from October onwards.