July exports slide 10.3% in 8th straight monthly decline

Contracting for the eighth month in a row, India’s exports were down 10.3 <g data-gr-id="49">per cent</g> in July to $23.13 billion, hit by global slowdown and dip in crude oil prices which impacted the value of petroleum products.

In July 2014, the merchandise exports had amounted to $25.79 billion. The last time exports registered a positive growth was in <g data-gr-id="56">November,</g> when shipments expanded at a rate of 7.27 <g data-gr-id="47">per cent</g>.

Imports, too, declined by 10.28 <g data-gr-id="46">per cent</g> to $35.94 billion in July this year due to fall in oil imports, leaving an 8-month high trade deficit of $12.81 billion, according to the data released by the Commerce Ministry. Compared to July last year, when it was $14.27 billion, the deficit has narrowed.

The main exporting sectors which reported negative growth last month include petroleum products (about 43.22 <g data-gr-id="41">per cent</g>), leather and leather goods (10.15 per cent), marine products (17.6 per cent) and chemicals (6.22 per cent).

Exporters expressed concerns over the continuous decline but <g data-gr-id="66">expects</g> that from August things will improve. “It is <g data-gr-id="65">matter</g> of concern as the decline is continuing.

But going for the figures of 10 days in August, we are expecting a little turnaround in August. From 

September, there will be the impact of base effect,” Federation of Indian Export Organisations (FIEO) President S C Ralhan said. 

The prime reason continues to be low prices of crude, metal and commodity, dip in manufacturing growth and slowdown in western markets, he said. Also, oil imports dropped 34.91 <g data-gr-id="57">per cent</g> in July to $9.48 billion. Oil imports account for about 31 <g data-gr-id="58">per cent</g> of the total imports. Petroleum product exports account for 18 <g data-gr-id="59">per cent</g> of the country’s total exports.

Non-oil imports, however, grew by 3.8 <g data-gr-id="43">per cent</g> to $26.46 billion. Gold imports increased by 62.22 <g data-gr-id="44">per cent</g> to $2.96 billion in July.

During the first four months (April-July) of the current financial year, exports are down 15.04 <g data-gr-id="53">per cent</g> at $89.82 billion. Imports too have declined 12.01 <g data-gr-id="54">per cent</g> to $134.86 billion, resulting in a trade deficit of $45 billion.

Meanwhile, reacting to the dismal numbers, exporters expressed concern over the continuous slide, saying <g data-gr-id="63">government</g> needs to immediately step in and chalk out a strategy to give them a competitive edge. “Continuous fall in exports is a matter of great concern and the troubles may even increase in the coming months since the global demand remains quite subdued, with the exception of the US markets,” engineering exporters’ body EEPC India Chairman Anupam Shah said.

“The government needs to immediately step in and chalk out a strategy for giving a competitive edge to the Indian exporters,” he added.

Contracting for the eighth month in a row, India’s exports were down 10.3 <g data-gr-id="48">per cent</g> in July to $23.13 billion, hit by global slowdown and dip in crude oil prices which impacted the value of petroleum products.

In July 2014, the merchandise exports had amounted to $25.79 billion. The last time exports registered a positive growth was in <g data-gr-id="72">November,</g> when shipments expanded at a rate of 7.27 <g data-gr-id="52">per cent</g>. 

However, exporters’ body FIEO President S C Ralhan said that going by <g data-gr-id="70">increase</g> in container traffic in <g data-gr-id="71">first</g> fortnight of August, he expects outbound shipments to move northwards for the month of August and subsequent months. Moreover, Ralhan cautioned the exporters to guard themselves against excessive volatility and hedge their currency risk rather than get swayed away by depreciation of Rupee.