Exports drop 28% in July

India’s exports slipped 28.4% in July to $13.6 billion as against $19 billion in the same month last year. The decline in exports is for 10th month in a row. During April-July, exports fell by 34.1% to $49.6 billion as against $75.3 billion in the same period last year. Not only exports, due to slowdown in the domestic economy, imports also dipped by 37.1% in July to $19.6 billion as against $31.2 billion in the corresponding period last year. The sharp fall in import has narrowed down trade deficit to $6 billion from $12.15 billion a year ago. Amid this falling trend, however, the Planning Commission said exports would pick up after 2010 when developed markets would return to positive growth. To give exports a fillip, the government in its new Foreign Trade Policy has announced sops for trade with new markets in Latin America and Africa, which by and large remained insulated from the global crisis. The sharp fall in imports is mainly due to the price effect. Oil prices are about 50% cheaper than last year. This has brought down the value of imports. India’s crude oil imports fell 16% to 10.02 million tonnes in July as refineries processed less oil, anticipating lower fuel demand in the domestic market and overseas. Crude imports slipped to 10.02 million tonnes in July, after rising for two months, from 11.93 million tonnes a year ago, according to the data available from the Petroleum Ministry. While domestic fuel consumption was up 3.6% to 10.94 million tonnes, demand in overseas markets particularly US and Europe dipped due to the meltdown. Diesel consumption climbed 10.8% to 4.52 million tonne in July, while petrol consumption was up 10.1% to 1 million tonne. Because of the global slowdown, fuel exports also fell 56.6% to 1.5 million ton, the data showed. The fall in the prices of commodities has also affected the exports figure.