Home > Trade (Import-Export) > India’s trade falls in 2009-10

India’s trade falls in 2009-10

Slowdown in the global economy had led to a year-on-year decline in exports from and imports into India. A sharp fall in exports began in October 2008 and continued until September 2009. Low base effect, coupled with a marginal revival in the global economy, enabled growth from October 2009 onwards. During financial year April-March 2009-10, India’s merchandise exports dropped to $176.5 billion, down by 4.7% compared to the previous year.

A fall was recorded in exports of engineering goods, electronics, handicrafts, carpets and cotton yarn during the year. Marine products, iron ore, tea, tobacco, fruits and vegetables and man-made fibres reported a growth.

The recovery in exports has been dramatic as exports during April-November 2009 were 22.3% below the year-ago level. The government had taken several measures to protect the falling exports from India, which were hampered by the global financial crisis. These include the extension of interest subvention, additional funds allocation for certain schemes, enhancing duty drawback rates on specific products and abolition of fringe benefits tax.

Imports into India started declining from January 2009 and continued till November 2009, after which it recorded a double-digit growth. Declining by 8.2%, imports fell to $278.7 billion in 2009-10. While oil imports declined by 8.7% to $85.5 billion, non-oil imports dipped by 8% to $193.2 billion. The commerce minister stated that merchandise export target for the current financial year (2010-11) has been set at $200 billion and that India plans to double its exports by 2014 from the current levels.

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Categories: Trade (Import-Export)
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