(MENAFN- Qatar News Agency) Indian Exports fell for the ninth consecutive month, dipping by 20.66% in August to $21.26 billion on the back of a steep decline in engineering and petroleum shipments.
The significant slump in country's exports is attributed to global slowdown and declining commodity prices worldwide.
In August 2014, the merchandise exports had amounted to US $26.8 billion. The last time exports registered a positive growth was in November 2014, when shipments had expanded at a rate of 7.27%.
Imports too declined by 9.95% to US $33.74 billion in August this year due to high gold imports, leaving the trade deficit at US $12.47 billion, according to the data released by the Commerce Ministry.
However, the trade deficit has narrowed in August as compared with July this year, when the figure stood at US $12.81 billion, Press Trust of India (PTI) reported.
In August last year, the deficit was US $10.66 billion.
Gold imports rose by 140% to US $4.95 billion in the month under review from US $2.06 billion in August last year.
The main exporting sectors which reported decline in exports include petroleum products (fall of 47.88%), engineering (29%), leather and leather goods (12.78%), marine products (20.83 per cent) and carpet (22 per cent).
Exporters expressed concerns over the continuous decline.
The government should immediately announce steps such as extension of interest subvention scheme to control this decline, Federation of Indian Export Organisations (FIEO) President S C Ralhan said.
Also, oil imports dropped 42.59% in August to US $7.35 billion. Oil imports account for about 31% of the total imports. Petroleum product exports account for 18% of the country's total exports.
Non-oil imports, however, grew by 7.01% to US $26.38 billion.
During the first five months (April-August) of the current financial year, exports are down 16.17% at US $111.09 billion. Imports too have declined 11.61% to US $168.6 billion, resulting in a trade deficit of US $57.5 billion.
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