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.
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.
{{/usCountry}}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.
{{/usCountry}}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.