Indian Exports decline almost 15% in this July

                    

                    A series of bad news are coming day after day in the clouds of Indian Economy, and the latest conclusion is the Exports are declining 14.8% In July only to $22.4 billion, which is eventually the sharpest contraction in the last three years. It is mainly because the demand from Europe and US are falling quite hugely now. These black clouds have to be removed quickly; otherwise Indian Economy will be in a very big trouble in the near future.

                 The Imports are declining too by almost 8% during this July, which is a clear indication of the moves of the companies to import less raw material and capital goods for production purpose. The continuous economic slowdown in the domestic industry is the main reason of this. Here it has to be mentioned that the industry output fell almost 2% in June and there not so much signs of demand having picked up.

                  But in exports the pace of declining is the fastest, which is a big reason to worry, as it simply means the expansion of trade deficit. Eventually India’s balance of trade already expanded from $14.8 billion in July 2011 to $15.5 billion this July. A weaker rupee should spur exports and imports would be discouraged as shipments into the country would get much more expensive.

                 While releasing the provisional data Commerce Secretary S R Rao said, “The world trade contraction has worsened. The worst fear of European sovereign debt crisis is really impacting world trade. In the US markets also, the appetite has subsequently come down... Days ahead are tough.” However, the Indian government is expecting an overturn in the next few months, with the backing of its various incentives, which are already announced. Honorable Commerce & Industry minister Anand Sharma said, “By the time we enter October, we hope that we will be able to bring about a positive improvement and enter a positive territory.” He had an important meeting with the trade bodies.

                                            Have a look here

	July 2011 (In $ Bn)	July 2012 (In $ Bn)	Rise/Fall (In %)
Exports	26.3	22.4	-14.8
Imports	41.1	37.9	-7.8
Balance of Trade	14.8	15.5	+4.7