New Delhi: India's exports declined by 14.8 per cent in July, steepest fall in three years, to $22.4 billion in the face of severe demand squeeze in Europe and slowdown in the US.
Reflecting slowdown in the economy, imports too declined by 7.61 per cent to $37.9 billion in July, leaving a trade deficit of $15.5 billion.
During the April-July period of 2012-13, exports have shrunk by 5.06 per cent to $97.6 billion. Imports during the period dipped by 6.47 per cent to $153.2 billion.
With contraction in exports for the third month in a row since May, the Commerce Ministry is not sure whether the $350 billion target for the current fiscal could be met.
After reviewing the situation with apex business chambers and export promotion councils,Commerce and Industry Minister Anand Sharma said, "we are seriously concerned because of the slowdown. The numbers have been depressing. We were anticipating a contraction, but the July numbers are a cause of concern".
Sharma said the government is expecting a turnaround from October.The Commerce Ministry will monitor the situation every month along with industry and trade bodies.
Equally concerned was Planning Commission Deputy Chairman Montek Singh Ahluwalia who said "The global economy is not looking very good. Prospects for Europe in current year are something like zero growth with negative in some countries...all countries including India are facing global environment that is not supportive. Trade deficit does (also) pose challenge".
Industry chamber Assocham said the exports for the current fiscal would be below $300 billion, against $304 billion in 2011-12. Rupee depreciation has not been of much to exporters either, it said.
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