Missing the annual exports target of $340 billion for 2014-15, the country's exports continued its declining trend, contracting by about 14 per cent in April to $22 billion -- a contraction for fifth straight month. The slump in exports is mainly due to global slowdown, dip in crude oil prices and rupee appreciation. Meanwhile, country's services exports were also down by 1.9 per cent at $14.05 billion in March 2015 as compared to the same month last year. As far the country's domestic product (GDP) is concerned, the services sector generally contributes about 60 per cent to country's GDP.
The main exporting sectors, including petroleum products, gems and jewelery and man-made yarn and fabrics, reported negative growth in April. Imports too declined by 7.48 per cent to $33 billion, leaving a trade deficit of $11 billion in the month under review, according to the data released by the Commerce Ministry. India has missed the annual exports of target of $340 billion for 2014-15. last year, total exports stood at $310.5 billion, while in April 2014, the country's merchandise exports stood at $25.63 billion. The last time exports registered positive growth was in November last year when recorded 7.27 per cent expansion.
However, India's services exports were down by 1.9 per cent at $14.05 billion in March 2015 as compared to the same month last year. Services exports were at $14.32 billion in March 2014. Import of services during the month also fell by 7.3 per cent to $7.87 billion, as against $8.5 billion in the same month of 2014, according to the Reseve Bank of India (RBI) data released on Friday.
As far as country's imports are concerned, oil imports dipped 42.65 per cent during April to $7.44 billion. Non-oil imports grew by 12.58 per cent to $25.6 billion. Gold imports surged by 78.33 per cent to $3.13 billion as against $1.75 billion in the month under review. In March, country's exports contracted by 21 per cent, the biggest fall in the last six years.
For services exports, it recorded 1.9 per cent down at $14.05 billion in March 2015. Services exports were at $14.32 billion in March 2014. Import of services during the month also fell by 7.3 per cent to $7.87 billion, as against $8.5 billion in the same month of 2014, the RBI data released on Friday said. Taking into account individual monthly data of services exports and imports, during 2014-15 total exports were at $160.51 billion, while imports were at $91.56 billion. Services exports in 2014-15 were down by 4 per cent compared to $167.01 billion in 2013-14. However, services imports rose by 3.8 per cent in 2014-15 compared to $88.19 billion in 2013-14. The RBI data are provisional and undergoes revision when Balance of Payments (BoP) data are released.