NEW DELHI: Amid slowdown in the global economies, the country’s merchandise exports continues to decline for the ninth month in a row, recording a drop of 20.66 per cent in August to $21.26 billion, leading to a trade deficit of $12.47 billion.
In August 2014, the merchandise exports had amounted to $26.8 billion. The last time exports registered a positive growth was in November 2014, when shipments had increased at a rate of 7.27 per cent.
Terming the export numbers as a major disappointment, Soumya Kanti Ghosh, chief economic advisor, State Bank of India , says these are the worse export numbers since October 2010. The devaluation of Chinese Yuan is expected to have eroded competitiveness of Indian shipments and led to volatility in the exchange rate.
Imports also declined by 9.95 per cent to $33.74 billion in August this year, according to the data released by the Commerce Ministry here on Tuesday.
However, gold imports rose by 140 per cent to $4.95 billion in August from $2.06 billion during the corresponding month last year. Ghosh hopes that the gold import numbers are an aberration and may be on the back of prices.
“We are in for a tough time, making it imperative for the government to work with the exporting community to sail through difficult waters of global trade,” said engineering exports body EEPC India chief Anupam Shah.
