US slowdown hits May export growthpress trust of india

On the other hand, runaway crude Oil prices pushed the country’s oil import bill by 50.8 per cent, weighing heavily on trade deficit that grew to 10.76 billion dollars in May.

A handsome growth of 31.50 per cent in the beginning of fiscal 2008-09 could not be sustained in May, when exports grew to 13.78 billion dollars against 14.40 billion dollars in April, according to official data released today.

Imports went up by 27.1 per cent to 24.54 billion dollars of which crude oil accounted for almost one-third at 8.46 billion dollars in May this fiscal. India’s imports in May 2007-08 were worth 19.31 billion dollars with crude oil accounting for 5.61 billion dollars.

A near 10 per cent increase in exporters’ margins due to rupee depreciation since April this year helped the situation, but the constraints of domestic bans and restrictions on export of wheat, non-basmati rice, steel and cement also took a toll on the export performance.

“The US and European markets are on the verge of recession. They would have impacted our export growth. Besides, domestic procurement (by exporters) is hard hit by inflation,” Federation of Indian Export Organisations President Ganesh K Gupta said.

He said in the backdrop of exports showing lukewarm performance in May, the Government should not rush into withdrawing the benefits extended last year when the rupee appreciated.

India’s exports in May 2007 were 12.21 billion dollars.

12.9 per cent

The increase in India’s exports in May, 08

18 per cent

The increase in the country’s exports in May, 07