NEW DELHI: The decline in exports was driven by a 60.3% drop in shipments of petroleum products to $2.4 billion due to lower crude oil prices.
India’s merchandise exports contracted for the tenth consecutive month and by the highest rate in September, as shipments of petroleum products continued to decline on lower crude oil prices, and external demand remained weak amid tepid global economic recovery.
Data released by the union commerce ministry on Thursday showed that exports contracted 24.3% from a year ago to $21.8 billion while imports shrank 25.4% to $32.3 billion, leaving a trade deficit of $10.5 billion.
Thus, in the first half of the fiscal (April-September), exports contracted 17.6% to $134 billion and imports shrank by 14.2% leading to a trade deficit of $68 billion.
In comparison,China’s exports fell 3.7% and its imports dived 20.4% from a year earlier in September, reflecting both lower global commodity prices and sluggish demand.
India’s dip in exports was driven mainly by a 60.3% drop in shipments of petroleum products to $2.4 billion.
Among the major items of exports, only drugs and pharmaceuticals grew 9.1% to $1.4 billion, while gems and jewellery, chemicals, engineering goods and readymade garments contracted by 18.8%, 13.4%, 22.8%, 12% respectively.
Imports of 19 out of 30 commodity groups also fell in August, led by crude oil, which fell by 54.5% to $6.6 billion.
Among the other major commodity groups, imports of chemicals (18.1%), plastic material (14.3%), pearls and precious stones (27.7%), iron and steel (9.2%), non-ferrous metals (12.4%), transport equipment (13%) also contracted in September.
Unlike in August, when gold imports picked up sharply by 140% to $5 billion, imports of the yellow metal in September shrank 45.6% to $2 billion.
