Indian Exports still in red as world economy still under recession

India's merchandise exports fellh in August, with the value of shipments falling 19.4 per cent to $14.29 billion from $17.72 billion in the like month of last year.


Imports during August were valued at $22.66 billion, showing a drop of 32.4 per cent, while the cumulative figure for the five-month period was down 33.4 per cent at $102.3 billion, showed the data released by the commerce ministry.

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"Although the downtrend in our exports continued in August, it is worth noting the rate of decline has come down to below 20 per cent compared to 28-33 per cent in each of the preceding four months," said the Federation of Indian Chambers of Commerce and Industry (FICCI).

"It would be a formidable challenge even to maintain the level of exports reached last year. This would mean we have to achieve a robust growth of over 32 per cent in the remaining seven months of 2009-10 to touch the $182 billion mark of in 2008-09."

The country's oil import bill also fell 47.4 per cent during the five-month period ended Aug 31 to $28.28 billion, from $53.74 billion in the corresponding period of last fiscal. In August, oil imports fell 45.5 per cent to $6.28 billion from $11.52 billion.
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Accordingly, the country's trade deficit during April-August was estimated at $38.17 billion, which was lower than the deficit of $60.73 billion during the like period last year.