Exports dip 9.74 per cent in August

India’s exports declined by 10 per cent in August to $22.3 billion on the back of sluggish demand in the US and Europe, making it the fourth successive month that exports have been on a downtrend.

According to foreign trade data released by the Commerce and Industry Minister, imports contracted by 5.1 per cent during the month to $37.9 billion. The trade deficit was recorded at $15.7 billion for the month.

In the year ago period, exports and imports stood at $24.7 billion and $39.9 billion respectively.

The decline in merchandise exports comes amid GDP growth slipping to 5.5 per cent in the first quarter of this fiscal and industrial output data showing subdued manufacturing activity.

However, the decline in exports in August is lower than that of the previous month  when the exports contracted by 15 per cent. Commerce Secretary S. R. Rao had recently said the incentives announced in the foreign trade policy was the reason for the reduction in decline. The government had extended 2 per cent interest subsidy to exports in the policy besides other benefits.

The data showed that in the first five months of the fiscal, exports by about six per cent to $120 billion from $127.5 billion in the same period last year.

During April-August, imports contracted by 6.2 per cent to $191.1 billion. Trade deficit during the period stood at $71.1 billion.