Exports shrink 16% in January 2009

The global slowdown continues to impact India’s exports which declined 16% in January 2009 to $12.4 billion from $14.7 billion in the corresponding period last year. However, because of the sharper fall in import by 18.2% to $18.5 billion in January 2009 as against $22.6 billion in the same period last year, the trade deficit also shrank by around 23% to $6 billion in January from $7.9 billion. While imports in January declined for the first time, exports shrank for the fourth month in a row. “A 16% dip is a bad sign for exporters. It shows that the last quarter may not pull up the GDP to 7%,’’ A Sakthivel, president, Federation of Indian Export Organisations, said. For the April-January period, India’s exports grew 13.2% to $144.3 billion. Imports were 25% up at $243.4 billion from $194.3 billion a year ago. During April-January period, trade deficit was $99 billion. Oil imports during the month almost halved to $4.46 billion from $8.5 billion in January, 2008. India’s oil imports during April-January were at $83.29 billion, 32.4% up from $63 billion in the year-ago period. Non-oil imports during January 2008-09 were estimated at $14 billion from $14 billion in January 2007-08. After growing at an impressive 31% in the first half of the fiscal, exports slumped for the first time in October registering a fall of 12% to $13 billion. The fall in November and December was at 9.9% and 1.1% respectively.