Impacted by weak demand in the key markets of North America and Europe, India’s exports declined 5.45% in June to $25.07 billion. Reflecting the slowdown in the domestic economy, imports dipped more sharply by 13.46% to $35.37 billion during the month compared to $40.8 billion year ago, resulting in a narrower trade deficit of $10.3 billion for the month.
According to the data released by the Commerce Ministry on Wednesday, exports during the April-June quarter of 2012-13 fiscal fell 1.7% to $75.2 billion from $76.5 billion in the same period last fiscal. Imports during the quarter declined 6.10% to $115.25 billion from $122.74 billion in the first quarter of 2011-12 fiscal.
Trade deficit during the quarter stood at $40 billion. “The contraction in global demand and deceleration in manufacturing are primary reason for decline in exports,” Federation of Indian Export Organisations (FIEO) president Rafeeque Ahmed said. Earlier last month, Commerce Secretary S R Rao had said that exports are declining as there has been a tremendous dip in trade in view of global economic slowdown.
The data showed that oil and non-oil imports during June declined by 4.43% and 17.80% to $12.68 billion and $22.68 billion respectively. Oil imports during the April-June period were valued at $41.58 billion, 5.48% higher than $39.42 billion in the corresponding period last year.
Non-oil imports during the quarter declined by 11.57% to $73.67 billion.