India's exports contracted
14.8 per cent in July - the steepest fall in three years - to $22.4 billion, mainly due to the demand slowdown in the US and Europe.
Exports has last seen such a steep fall in August 2009, when they fell 23.5 per cent.
Reflecting slowdown in the economy, imports too declined by 7.61 per cent to $37.9 billion in July, leaving a trade deficit of $15.4 billion.
During the April-July period of FY13,
the country's shipments have shrunk by 5.06 per cent to $97.6 billion. Imports during the period dipped by 6.47 per cent to $153.2 billion.
Commerce Secretary S R Rao has said the
European sovereign debt crisis is impacting the world trade and in the US markets too, demand is not picking up.
"Days coming ahead are tough," he has said.
According to trade experts, it would be difficult to achieve the
exports target of $360 billion set up for the current fiscal.
"Going by the trend so far and the continuous degrading global market condition, I have my grave doubts on achieving the exports target of this fiscal," Director of Indian Institute of Foreign Trade (IIFT) K T Chaco said.
Chaco said even market diversification "will alone not help Indian exporters till the major markets are down".
Oil and non-oil imports in July declined by 5.52 per cent and 8.57 per cent to $12.22 billion and $25.7 billion respectively.
During the first four months of the current fiscal, oil imports grew by 2.76 per cent to $53.81 billion from $52.36 billion in the corresponding period last year.
However, non-oil imports during April-July 2012-13 dipped by 10.82 per cent year-on-year to $99.38 billion.
With inputs from PTI
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