India’s exports shrunk for 13 straight months, but October’s fall of 6.6 per cent was much milder than the previous months’ sharp contractions, triggering hopes of a turnaround for embattled exporters.
Latest trade data released on Tuesday showed that exports during the month stood at $13.19 billion against $14.13 billion in the same period last year. Imports fell by 15 per cent during the month to $21.9 billion.
A Sakthivel, president, Federation of Indian Export Organisations (FIEO) said exports will show a positive growth from January 2010.
“There are positive signs from US and Europe and Christmas and New Year sales will push exports,” he said.
The government has unveiled a mix of procedural measures, fiscal incentives to increase shipments to non-traditional destinations including countries in Latin America and Africa. At present, about 60 per cent of India’s $168 billion exports are destined for the US and EU.
Shrinking world demand has affected India’s handicrafts, gems and jewellery, leather and textile exports severely during the year.