Country’s missed it s export target for financial year 2013-14 as exports declined for the straight month in March 2014 due to sluggish demand in major markets.
Exports fell 3.15 per cent to $29.5 billion in March, while the overall shipments in 2013-14 increased 3.98 per cent to $312.35 billion against a target of $325 billion.
According to exporters, outbound shipments were affected by both domestic and global factors.
“Manufacturing is declining. About Rs 20,000 crore is held up with the revenue department as they are not clearing our refunds. It has impacted exports adversely. Global demand situation is also not very healthy,” Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed said.
He expressed hope that exports would improve in the coming months.
India’s exports grew 3.98 per cent to $ 312.35 billion in 2013-14, while imports dipped 8.11 per cent to $450.94 billion, narrowing the trade deficit to $ 138.59 billion, according to data from the Ministry of Commerce and Industry.
A drop in gold and silver imports helped to shrink the trade gap. Overseas purchases of the precious metals dropped 40 per cent to $ 33.46 billion.
The trade deficit in 2012-13 stood at $190.33 billion.In March, exports contracted 3.15 per cent to $ 29.57 billion and imports fell 2.11 per cent to $40 billion from a year earlier. The trade deficit last month was at $ 10.5 billion compared with $ 10.4 billion in March 2013.
The country’s merchandise exports in 2013-14 fell short of the target of $325 billion set by the government and were higher than $300.4 billion in 2012-13.
Oil imports in March increased 17.7 per cent to $ 15.78 billion. In 2013-14, oil imports grew 2.2 per cent to $ 167.62 billion.