Exports growth plunged to 10.4% in September, from a high of 35% for April-August. September shipments were a poor $13.74 billion, taking the total for the six months to $95 billion against a fiscal year target of $200 billion.
The September numbers show the demand slowdown in key markets have begun to tell on India?s exports.
?This (the slowdown in exports) is an indication that the months to come will be challenging for exporters… We fear that there would be production cuts and job losses,? said Ajay Sahai, director general, Fieo.
Imports rose 43.3% in September to $24.38 billion, mainly on a rise in oil prices. Oil comprises more than a third of the country?s total imports.
The wide mismatch in exports-imports growth swelled trade deficit to $10.63 billion in September, from $4.55 billion a year ago. Experts expect the deficit to come down in the remaining months since oil and metal prices have begun fall globally. Still, the deficit could cross $100 billion this year.
Oil import bill went up by 57.1% to $9.09 billion in September, against $5.7 billion in the same month last year.
Commerce secretary GK Pillai said the government would set up a high-powered committee to help industries, cushion the global crisis impact on the economy and avert job losses.