India’s exports fell for the ninth month in a row in June, this time by 27.7 per cent, on account of the global downturn, while imports dropped by 29.3 per cent, reflecting slowdown in domestic consumption.
As the country’s total imports, largely influenced by a whopping decline of 50.6 per cent in oil imports, showed a faster pace of contraction than exports, the trade deficit was USD 6.16 billion in June 2009-10 from USD 9.12 billion in the same month last fiscal.
Exports dropped to USD 12.81 billion in June from USD 17.73 billion in the same month last year, according to the government data released on Monday.
Federation of Indian Export Organisations (FIEO) Director-General Ajay Sahai said the declining trend is likely to continue for some more months.
The exporters’ body acknowledged that the government cannot increase demand in the global markets but it should give incentives to exporters so that they do not lose orders.
“The government should take short-term measures first and then come out with long-term policies after the global commerce shows improvement,” he said.
The Government is slated to unveil Foreign Trade Policy, which spells out the segments of priority in external trade and also gives incentives and disincentives, depending on the country’s needs.