India’s foreign trade shrinks in May
14 Jun 2012
India's overall trade registered negative growth year-on-year in May, the second month of the current financial year, with both exports and imports showing a declining trend amidst signs of stagflation in the economy.
Exports from the country registered a decline of (-) 4.16 per cent at $25.68 billion in May 2012, against imports of $26.79 billion recorded in May 2011.
Imports during the month stood at $41.9 billion, showing a negative growth of (-) 7.36 per cent.
Despite the decline in overall trade, India registered a trade deficit of $16.22 billion during May 2012. Cumulative trade deficit for the first two months of the fiscal (April-May 2012-13) has gone up to $29.67 billion.
Cumulative exports during April-May 2012 stood at $50.13 billion, registering a negative growth of (-) 0.69 per cent. Imports during the two months were also lower by (-) 2.42 per cent, at $79.8 billion.
The decline in exports has been felt across all major sectors. Engineering exports from the country, one of the major earners of foreign exchange for the country, showed a decline of (-) 15.67 per cent at $4.86 billion during May 2012.
