Exports contract for 7th month; no respite ahead, say experts

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Dec 12, 2012 01:33 IST

India's exports contracted for the seventh month in row in November by 4.2% year-on-year at $22.2 billion, hit by the economic slowdown in the US and Europe, with experts saying it is unlikely to pick up in the coming months.

Imports, however, surged by 6.4% at $41.5 billion during the month, leading to a trade deficit of $19.3 billion.

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Exports during the April-October period of the current fiscal shrunk by 6.0% at $189.2 billion. Imports during the period dipped by 1.6% at $318.7 billion.

With uncertainty in the eurozone showing no signs of easing and US staring at the fiscal cliff, analysts painted a grim outlook for the sector in the coming months. "Weakness in the exports sector is likely to continue as recession in the eurozone continues," said DK Joshi, chief economist, Crisil.

Oil imports rose by 16.7% at $14.5 billion in November, while non oil imports increased by 1.5% at $27 billion.

The government could look at providing some cushion to the sector. "Hopefully by end of the week, the government will announce some support measures," said SR Rao, commerce secretary.

 

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