Exports dip by 4.6 p.c. in June

By Our Special Correspondent

NEW DELHI, AUG. 1. Reflecting worldwide economic slowdown, the growth in Indian exports slumped by 1.76 per cent in the first quarter of the current fiscal (April-June 2001). The growth actually declined by 4.63 per cent during June.

The dip in growth is bound to cause concern as it is clear that exporters are going to face an uphill task this year. The country's major export market is the U.S. where the economic slowdown has begun. Similarly, another major market, Japan, is witnessing low consumer demand. The European Union (EU) is not as badly affected, but the impact of depressed consumer demand in the biggest markets is bound to affect exporters.

The trade data released today by the Commerce Ministry also show that imports have declined by 2.4 per cent in the first quarter. Oil imports have risen by a marginal 0.97 per cent but the increase is on a high base since there was a sharp increase last year due to hardening of world prices. Non-oil imports have fallen by 3.03 per cent and are estimated at $8.5 billion as compared to $8.8 billion in April-June 2000-01. Imports during June rose marginally by 0.56 per cent to $4 billion from $3.9 billion.

With imports showing negative growth, the trade deficit has declined to $1.9 billion from $2.4 billion during the first quarter of 2000-01.

Total exports during April-June 2001-02 are valued at $10.5 billion against $10.34 billion last year. Exports during June alone were $3.2 billion, down by 4.63 per cent from $3.4 billion in the same month last year. Total imports during the first quarter are estimated at $12.4 billion, a 2.4 per cent decline from $12.75 billion in the previous year.

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