India's exports fell 6.6 per cent in October extending the decline for the 13th month in a row, but the downward trend has slowed down amid some revival in demand in overseas markets.
The pace of falling exports has slowed down also because of lower exports in the same month last year.
According to official foreign trade data released today, exports in October were valued at $13.19 billion, down from $14.13 billion during the same month last fiscal.
Imports also continued to fall at $21.9 billion in October, down by 15 per cent from $25.8 billion in the comparable period.
As a result, trade gap narrowed further to $8.8 billion in the month from $11.7 billion in October 2008.
Exports started falling in October last year following deepening of global financial crisis post-Lehman collapse. This coupled with recession in developed markets saw India's exports taking a severe beating.
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Exports fell a steep 39 per cent in May. The pace has narrowed since, with October exports down 6.6 per cent.
Analysts attribute the uptick to revival of some demand in the overseas markets and hoped that the forthcoming Christmas festivities would further push Indian exports.
Moreover, the US and other major markets have come out of the recession in July-September quarter. Apex trade body FIEO's President A Sakthivel said, "We hope exports will show a positive trend from January 2010 onwards due to recovery in the West."
The US and Eurozone have managed to come out of the recession in the third quarter of 2009.
Sakthivel added, continued fall in the negative growth is a healthy sign and with Christmas and New Year round the corner exports are likely to gather pace.
Earlier, Commerce and Industry Minister Anand Sharma had said, "We have succeeded through policy interventions and incentives to arrest the steep decline (in exports). The government, which is carefully monitoring the developments will intervene, if required."
In April-October, exports plunged 26 per cent to $91 billion against $123 billion in October 2008.
In 2008-09, India clocked exports of $185.1 billion.
As per the foreign trade data, oil imports in October 2009 were valued at $6.6 billion, down 9.3 per cent from $7.2 billion in the same month last year.
Oil imports during April-October of the current fiscal were valued at $42.8 billion, 39.3 per cent less than $70.5 billion in April-October 2008.
Similarly, the non-oil imports dipped 17.2 per cent to $15.38 billion in October 2009 from $18.5 billion in the same month of the last fiscal.
Imports of non-oil goods were down 24.8 per cent in April-October period of this fiscal to $105.5 billion from $140.2 billion in the same period last year.
Exports of gems and jewellery, petroleum products, drugs and pharmaceuticals, cotton yarn and fabrics, leather and marine products have shown positive growth. However, engineering and electronics remained areas of concern.