Continued uncertainty in the Euro Zone resulted in a sharp 15.02 per cent export decline in February to $21.54 billion from the same month last year.
The fall in out-bound shipments — the third in a row —- is spread across all major sectors, including gems & jewellery, engineering goods, petroleum products, electronics and pharmaceuticals.
The decline, however, has not dented the balance of payments as imports posted a sharper decline of 15.66 per cent to $28.39 billion during the month due to low global oil prices.
The trade deficit narrowed to $6.84 billion in February compared with $8.31 billion a year ago, according to quick Commerce Ministry estimates.
Exporters have called for immediate announcement of relief measures in the “long-delayed’’ Foreign Trade Policy by the Central government to retain their foot-hold in Europe. “The demand from Europe is low because of continued financial problems in the zone and the value of euro has been falling. Chinese exporters, because of their fixed exchange rate, are faring much better,” said Federation of Indian Export Organisations chief Rafeeque Ahmed.
Engineering Export Promotion Council Chairman Anupam Shah said engineering exports, which had managed to stay afloat the last few months, also declined in February, underlining the need for fiscal support.
Gold imports up Gold imports increased 48.78 per cent to $1.98 billion mainly because of relaxation of import restrictions.
Exports during the April-February 2014-15 period were at $286.58 billion, just 0.88 per cent higher than the same period last year. Imports during these 11 months were 0.71 per cent higher, at $411.80 billion,