New Delhi,Shubhashish(dna): India’s exports in the month of May 2015 stood at $22.34 billion, lower by nearly a fifth as against the same month last year. This is also the sixth consecutive month of fall in India’s exports to the world. Imports, too, fell but at a lower pace of 16.52%.
According to the data made available by Ministry of Commerce and Industry, Indian imports for the month of May 2015 were recorded at $32.75 billion, lower by nearly 16.5% as against imports of $39.23 billion in May 2014. In rupee terms, imports fell by over 10%.
The government data showed that the precipitous fall in crude oil prices helped to post the lower import bill as India’s oil imports for the month of May 2015 fell by nearly 41% and were valued at $8.53 billion as against $14.46 billion in May 2014.
The trade deficit fell to $10.4 billion as against $11.23 billion in the corresponding month of last year.
India’s trade deficit for the month of January, February, March and April stood at $8 billion, $6.8 billion, $11.8 billion and 11 billion, respectively.
Indian exports and imports have been on the decline since the beginning of this calendar year but it is the fall in crude oil imports that is helping immensely to keep the trade deficit numbers under control.
An analyst tracking India’s macroeconomic data said, “There is a slump in global demand.”
Global economic behemoth, China, too has reported a third consecutive month of exports decline.
South Korea said that its May exports were down 11%, biggest slump in six years.
The analyst said, “Exports globally are shrinking as growth in China is contracting and this is a worrying sign. None of the BRICs countries are showing any recovery in their international trade.”
Daljeet S. Kohli and Kaushal Patel of IndiaNivesh Securities Pvt Ltd in a report dated May 18 had said that steep decline in crude oil prices has impacted India’s oil exports which has reduced from 20% to 12% in April 2015.
They said , “Overall, with weak global demand exports will remain under pressure and if manufacturing activity revives in FY16, imports of raw materials and intermediate goods are likely to increase.”
“Increasing imports of gold also continue to remain main cause of concern in the Indian economy. So, as long as crude oil price is at low level, it will continue to help to offset any increase in non-oil imports,” they added.
India gold import bill for May 2015 stood at $2.42 billion, up by over 10% as against the same month of last year.