Exports contract by 21%

In a clear indication of deepening global contraction reducing demand for ‘Made in India’ stuff, the country’s exports slid 21.7% in February, a record in the last 13 years. Simultaneously, signalling a demand squeeze at home, imports too shrank 23% in the month under review, marking a second successive fall. Latest government data released showed exports coming down to almost $12 billion in February from a little over $15 billion in the corresponding period last year. Imports dropped to about $17 billion from nearly $22 billion. This narrowed the trade deficit to almost $5 billion from a tad over $6 billion in January. Even in rupee terms, both exports and imports showed contraction during the month. Exports dipped 3% to Rs 58,685 crore from Rs 60,476 crore in February 2007. Imports shrunk by almost 5% to Rs 82,872 crore. For the April-February 2008-09 period, however, exports grew marginally by over 7% to nearly $157 billion, while in the April-January period it was over 13%. Imports were 19% up at about $272 billion from $228 billion a year ago. Oil imports during February dipped to $4 billion from about $8 billion. India’s oil imports during April-February were at $90 billion, 27% up from $71 billion in the year-ago period. Non-oil imports during the month were estimated at $13 billion from $14 billion in February 2008. After growing at an impressive 30.9% in the first half of the fiscal, exports slumped for the first time in October registering a fall of 12% to $12.8 billion. The fall in November and December were at 9.9% and 1.1%, respectively, while the dip in January was about 16%. The WTO has said global trade is likely to shrink by 9% in 2009. The Planning Commission, too, has said India’s export growth could be as little as 3% in 2009-10.