* Goods exports shrink 11 pct in April, down for fifth month
* Trade deficit narrows helped by falling oil imports
* Exporters see fall in orders for coming months
(Adds quote, details)
By Manoj Kumar
NEW DELHI, May 15 (Reuters) – India’s exports slumped for
the fifth straight month in April from a year earlier, dragged
down by fall in global demand that has cast a shadow over Prime
Minister Narendra Modi’s goal of achieving over 8 percent growth
in 2015/16 fiscal year.
The ongoing weakness in merchandise exports, which account
for about 16 percent of India’s roughly $2 trillion economy,
will weigh on January to March economic growth numbers due to be
released on May 29.
Modi sees manufacturing and export-led growth as the best
way to create jobs for the millions of young people who helped
him gain power last year.
He aims to almost double goods and services exports to $900
billion in the next four years.
But merchandise exports contracted 14 percent in
April. The trade deficit narrowed to $10.99 billion
as oil imports declined by more than 42 percent from a year
earlier, data released by Ministry of Commerce and Industry
showed on Friday.
Exporters said falling global commodity and crude oil prices
had so far partly offset their lower overseas sales, but they
fear more gloom – as demand is falling further, particularly in
oil exporting and Latin American countries.
“There is a fall in order booking for coming months,
particularly from buyers in the Middle East, Africa and Latin
American countries,” said Ajay Sahai, a senior executive at the
Federation of Indian Export Organisations.
He warned that exporters could be forced to lay off workers
if sales orders continued to decline over the next 4-5 months.
Some relief could come from the Reserve Bank of India, which
has cut policy rates twice this year to 7.5 percent because of
slower consumer inflation, and is expected to make borrowing
cheaper again when it meets for a policy review on June 2.
To counter slack global demand, Modi has vowed to modernise
overloaded roads, ports and railways in a bid to make India’s
exports more competitive. This week, he is visiting top trading
partner China, hoping to invigorate exports.
India’s economy expanded 7.5 percent year-on-year during the
three months ending in December, higher than China’s 7.3 percent
growth recorded in that quarter.
(Additional reporting by Aditya Kalra; Editing by Frank Jack
Daniel and Alex Richardson)
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* Goods exports shrink 11 pct in April, down for fifth month* Trade deficit narrows helped by falling oil imports* Exporters see fall in orders for coming months
(Adds quote, details)By Manoj KumarNEW DELHI, May 15 (Reuters) - India's exports slumped for
the fifth straight month in April...
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