Indian Exports Fall

India’s exports continue to fall

India’s exports fell in May for the eighth month in a row as overseas demand for goods continued to shrink in the global recession.

Exports in May were valued at 534.3bn rupees ($11bn; £6.7bn), down 29.2% from 655bn rupees a year earlier, government figures showed.

Exports are a significant driver behind the Indian economy, making up about 15% of gross domestic product. Imports shrank 39.2% to 786.8bn rupees from 1.1 trillion rupees a year ago. The falling price of oil was a significant factor behind the decline in imports. Oil currently stands at about $70 a barrel – less than half of what it was last summer.

Oil imports in May were down 60.6% on the year. India imports about 75% of its oil. India’s trade deficit – the difference between imports and exports – halved to 252.5bn rupees from 533.2bn rupees a year earlier.