New Delhi: India's exports dipped deeper in the negative zone recording a decline of 21 percent in March, the biggest fall in the last six years, pulling down the total shipment for 2014-15 to USD 310.5 billion, missing the target.
Exports have been on downward spiral since December last year. The previous biggest decline in export was in July 2009, when it dipped by 28.4 percent.
Falling exports and an increase in gold imports have widened the trade deficit to four-month high of USD 11.79 billion in March.
Gold imports in March almost doubled to USD 4.98 billion.
Falling exports of petroleum products (59.5 percent), gems and jewellery (8.36 percent), chemicals (5.36 percent) and engineering goods (2.5 percent) have led to the sharp contraction in March. These sectors contribute about 70 percent to the country's total exports.
In March, exports decreased to USD 23.95 billion compared with USD 30.34 billion in the a year-ago period, as per the Commerce Ministry's data.
Compared with the previous fiscal, exports dipped by 1.23 percent in 2014-15.
The government had fixed the target at USD 340 billion for 2014-15.
In 2013-14 too, total merchandise shipments stood at USD 314.4 billion, missing the annual target of USD 325 billion.
Imports contracted by 13.44 percent to USD 35.74 billion in March.
During 2014-15, imports dipped by 0.59 percent to USD 447.5 billion in 2014-15, leaving a trade deficit of USD 137 billion.
Industry experts said government will have to give a special thrust on enhancing exports.
"We have to move at higher end of the value chain. The figures are not good. We are still exporting lower-end products," FIEO Director General Ajay Sahai said.
Oil imports declined by 52.68 percent to USD 7.41 billion in March. During 2014-15, it dipped by 16.09 percent to USD 138.26 billion.
An official said the sharp decline in global oil prices has impacted India's petroleum exports, which account for 22 percent of total shipments.
Non-oil imports in March grew by 10.55 percent to USD 28.33 billion as against USD 25.62 billion in the same month last year.
During 2014-15 fiscal, imports were up by 8.35 percent to USD 309.28 billion.
Of the total 30 exporting sectors, which were tracked by the government, 22 have recorded negative growth in March. These include tea, rice, oil meals, marine products, meat and dairy products, iron ore, coal and minerals, leather, pharmaceutical and electronics.
The sectors which registered positive growth include coffee, tobacco, spices, cashew, oil seeds and textiles.
The Federation of Indian Export Organisations (FIEO) said that continuous slowdown in demand in global markets and liquidity problem are the major reasons responsible for the double digit negative growth in exports.
It expressed serious concerns over the declining trend and said that Indian exporters need immediate attention.
"Government should declare exports as priority sector and also restore interest subvention scheme to arrest the fall in exports," it said.
