Growing Global Eco Uncertainties: Export Dips 5.45 Percent in June

New Delhi: India's exports contracted for the second consecutive month in June by 5.45 percent year-on-year to $25 billion in the wake of growing economic uncertainties in developed economies. Reflecting slowdown in the domestic economy, imports too dipped sharply by 13.6 percent to $35.37 billion from $40.8 billion in June 2011, resulting in a narrower trade deficit of $10.3 billion during the month. Dismal export performance comes on the back of India's economic growth slipping to nine-year low of 6.5% in 2011-12 and subdued industrial output in the first two months of the current fiscal. "It is quite distressing that from the past two months exports performance was not good. But world over there has been a tremendous dip in trade and this is going to be (the trend) in at least next one or two years," Commerce Secretary S R Rao told reporters here. According to the provisional data released today, exports during April-June 2012 dipped by 1.7 percent to $75.2 billion from $76.5 billion in the same period last fiscal. Explaining reasons about the decline, Rao said: "In euro zone we do not see any finality. The US market is also contracting and so is Chinese. Japan is again showing some distress. These are signs of recession all over the world." Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said the contraction in global demand and deceleration in manufacturing are primary reason for decline in exports. During April-June 2012, imports declined by 6.10 percent 115.26 billion from $122.74 billion in the same period last year. Trade deficit during the period too dipped to $40.06 billion from $46.3 billion in April-June 2011.