Exports fall short of $340 bn target

Indian exports for 2014-15 fell short of the annual target by 11.52 per cent as overseas shipments during March fell by as much as 21.06 per cent. Official figures released on Friday showed annual exports at $310.5 billion missing the target of $340 billion fixed for the financial year ended March 31, 2015. Compared to previous fiscal, exports are also down by a marginal 1.23 per cent.

Imports too dipped by 0.59 per cent to $447.5 billion in 2014-15, leaving a trade deficit of $137 billion during the fiscal. The country's trade deficit in March was the highest in four months, at $11.79 billion, as exports fell to $23.95 billion although imports also contracted by 13.44 per cent to $35.74 billion due to the decline in oil prices. Gold imports during the month, however, almost doubled to $4.98 billion.

A plunge in global prices of crude oil, by nearly half since last June, has slashed the country's import bill, making for a less worrisome trade deficit, despite a drop in exports in recent months.

Oil imports during April-March, 2014-15 were valued at $138.26 billion which were 16.09 per cent lower than $164.77 million in the corresponding period of previous fiscal. A closer look at the monthly figures shows a sharp slide in both imports and exports since September, however economists worry exports could remain sluggish if demand in major markets, such as Europe, slumps further and the rupee appreciates.

Europe's share in India's merchandise exports fell more than 2 percentage points to 18.1 per cent in the 11 months to February, to stand at $51.6 billion, while other regions showed growth in sales, commerce ministry data showed.