Exports sink 29% in May to $11 b; oil imports slip

NEW DELHI: Exports declined for the eighth month running in May, falling by 29% to $11 billion as exporters pinned their hopes on the Budget next week for new measures to improve competitiveness.

Imports, too, fell by 39.2% from a year ago to $16.2 billion mainly because of a sharp decline in oil imports, government data show, halving the trade deficit to $5.2 billion.

India imported oil worth $4.13 billion in May, a 60% decline from a year ago.

Commerce and industry minister Anand Sharma said exporters can expect ���some relief��� in the Budget and availability of credit on easier terms.

The Fieo grouping of exporters warned that if the government does not move immediately to arrest the decline, more job losses would follow.

���If the government provides necessary support, exports may show positive growth from October this year, though double-digit growth will only be seen in 2010,��� Fieo president A Sakthivel said.

Since the high base effect for export data���exports were rising at over 30% till August 2008���will run out in September and the stimulus packages in the US and the EU are expected begin making an impact around the same time, an upturn is likely in the second half of the ongoing fiscal.

���The second half of 2009-10 would be better for exports,��� Mr Sharma said.

In 2008-09, India���s exports were just 3.4% higher at $168.7 billion and Mr Sharma has said he is confident that it can maintained at the same level this fiscal year.