Exports fall in Oct, first dip in 5 yrs

The country’s monthly export data showed a fall for the first time in five years on Monday as the maiming effect of a slowdown in the key US market began to bite, reports HT Correspondent.

The country’s monthly export data showed a fall for the first time in five years on Monday as the maiming effect of a slowdown in the key US market began to bite.

HT Image

Policy makers in the commerce and industry ministry are grappling with options to boost exports amid shrinking order books due to one of the worst slowdowns in the world economy in the last 80 years.

India’s exports contracted by 12 per cent in October compared with the same month of the previous year. The country thus appears set to miss the overall $200 billion export target for 2008-09.

Nervous exporters, smarting under severe earnings erosions last year, are struggling to ink new contracts as demand shrinks amid growing bankruptcies in the US, India’s largest export market. US retail stores are badly hit, and many of them are in bankruptcy. Winter apparel exports from India is down about 20 to 25 per cent, according to the Apparel Export Promotion Council.

With import bills going up as well, the trade deficit is yawning. With the rupee weaker, the government pays more rupees for the same amount of oil.

Oil imports during April- October, 2008 were valued at $65.77 billion, which was 60 per cent higher than last year. Trade deficit for April- October, 2008 was estimated at $72.99 billion which was higher than the deficit at $45.64 billion during April- October, 2007.

The Commerce Ministry has suggested a fiscal package to boost exports, which is now being discussed by the government.