India misses export target in FY15; annual exports dip 1.23%

NEW DELHI: India’s exports fell for the second time in three years, declining 1.23% in FY15 and falling short of meeting the last year’s level by $4 billion.

The exports last fiscal stood at $310 billion, according to the data released by the ministry of commerce on Friday. Imports on the other hand contracted by just 0.59% during the year.

The gap between country’s exports and imports widened slightly during the year to $137 billion as against $135 billion in the previous year.

The outbound shipments in March contracted at the sharpest pace in over three years at 21.06%, fourth straight month of decline that could be attributed to a host of factors including even as low valuation of crude oil, sharp appreciation of rupee and demand fall.

Most sectors posted a de-growth in exports during the month including gems and jewellery, engineering, electronics, leather, petroleum, etc.

The trade deficit in March widened to a four month high in March on account of sharp uptick in gold imports. Gold imports nearly doubled in March compared to the previous year at $5 billion whereas silver imports shot up by 193% during the month.

Petroleum exports fell by 59% during the month.

Gold imports were relaxed last year after the Reserve Bank of India scrapped the 80:20 rule in November that mandated importers to export one-fifth of their consignment imported. The duty on gold that was raised in phases from 2% to 10% in 2013 to check the widening current account deficit has been left unchanged.