Exports fall first time since 2009

The dip in exports come at a time when S&P’s revised its credit rating outlook for India from stable to negative on account of policy paralysis and widening fiscal deficit.

However,despite the slowdown,India breached its yearly target of $300 billion for the fiscal year 2011-12. Outbound shipment stood at $303.7 billion during the last fiscal,recording a 21 per cent increase,the ministry of commerce said.

Imports,however,for 2011-12 reached $488.6 billion on account of rise in imports of crude oil and gold. These two items alone accounted for over 44 per cent of total import bill.

Earlier,Commerce Secretary Rahul Khullar had said the trade deficit situation can worsen in the current fiscal. As the balance of trade ballooned sharply to highest-ever at $184.9 billion,Khullar had said given the fact that global economic environment is not friendly,India needs to work harder to promote its export in the current year. He had also said that policy decision to rein in imports in sectors like coal was needed.

While export of engineering goods grew $ 58.2 billion,up 68.9 per cent,petroleum & oil products grew $ 57.5 billion; gems and jewellery registered a growth of $45.9 billion; drugs and pharmaceuticals $13.1 billion; leather $4.2 billion; electronics $9 billion; cotton yarn and fabric made-up $7.2 billion.