India's exports fell 21% in March - the steepest monthly decline in almost six years - as the value of oil shipments crashed almost 60% due to a collapse in global prices. But trade deficit widened marginally this March even as imports contracted 13.4%.
The latest data estimated merchandise exports at $23.9 billion in March compared to $30.3 billion a year ago. Similarly, imports fell to $35.7 billion in March 2015, as against $41.3 billion a year ago. As a result, trade deficit widened marginally to $11.8 billion this March, compared to $11.1 billion in the corresponding period a year ago. The poor performance in recent months meant that exports during the 2014-15 were estimated 1.2% lower at $310 billion, compared to the annual target of $340 billion. The data has got experts worried. “While we expect stable commodity prices to curtail the current account deficit in 2015-16 under 1% of GDP the weak momentum for exports remains a concern as it may cast a pall upon the economic recovery, particularly given the less-than-robust outlook for domestic demand,” said Aditi Nayar, senior economist at ratings agency ICRA.
In June 2009, at the height of the global economic crisis, exports had declined over 28%, according to commerce department data. “Double-digit decline in exports for three consecutive months is a cause of worry,” added Ficci secretary general A Didar Singh. Gold imports almost doubled to nearly $5 billion, while silver shipments nearly trebled from $191 million in March 2014 to $561 million this March.
