India’s Exports Fall for Sixth Straight Month

New Delhi, June-16 India’s exports fell for the sixth month in a row in May, government data showed Tuesday, clouding prospects of an export-led recovery in the south Asian economy.

Exports slumped 20.19% from a year earlier to $22.35 billion, according to data released by the Ministry of Commerce and Industry. In April, exports fell 13.96%.

Imports also fell 16.52% to $32.75 billion, as lower global oil prices helped cut the country’s oil import bill by 40.97%.

As a result, the trade deficit narrowed to $10.41 billion last month from $10.99 billion in April and $11.23 billion a year earlier.

India’s weak exports underscore the challenges faced by the south Asian economy that is struggling to gain momentum despite efforts by policy makers to accelerate growth.

Sluggish demand in key global markets such as the U.S. and Europe has hurt Indian exports. While the sharp fall in crude oil prices since last June has helped India reduce its import bill, the country’s exports of petroleum products, which make up a sizable share of its total exports, have also suffered as a result.

Exports of petroleum products fell 59.1% from a year earlier to $2.43 billion in May, the data showed.

However, gold imports gained 10.47% to $2.42 billion. If gold imports continue to rise, they could revive concerns of a widening in the trade deficit that has in recent years weighed heavily on the rupee.

Source:WSJ