Attributing the drop of exports in March to various factors, including appreciation of the rupee, industry bodies asked the government to come out with a foreign trade policy that facilitates outbound shipments.
Exports contracted 3.15 per cent to USD 29.57 billion in March and imports fell 2.11 per cent to USD 40 billion from a year earlier.
Outward shipments in 2013-14 fell short of the USD 325 billion target fixed by the government. Exports grew 3.98 per cent to USD 312.35 billion in 2013-14, while imports dipped 8.11 per cent.
"It is worrisome that our exports fell by more than 3 per cent in each of the last two months and we have missed the export target of USD 325 billion," Ficci Director General Arbind Prasad said.
He said with global growth expected to improve, led by developed economies, especially the US, India's exports should pick up this year.
The foreign trade policy for 2014-19 should focus on services exports, e-commerce, hi-technology products, branded exports and effective co-ordination with states, Federation of Indian Export Organisations President Rafeeque Ahmed said.
"We hope an industry-friendly foreign trade policy is announced soon, which will help stimulate India's exports," Chairman of the CII National Committee on Import & Export Sanjay Budhia said.
The slowdown in exports could be attributed to factors such as exchange rate volatility, gold import curbs and their effect on jewellery exports and regulatory problems for India's drug industry overseas, he said.
"At this juncture, government should facilitate exports and address various operational issues faced by exporters, especially SME exporters," President of PHD Chamber of Commerce Sharad Jaipuria said.
Imports declined to USD 450.94 billion, narrowing the trade deficit to USD 138.59 billion in 2013-14.
Assocham President Rana Kapoor said though a sharp reduction in the trade deficit provides stability to the macro picture, it is more a reflection of the slowdown since import compression followed the subdued economic environment.
"Significant decline in trade deficit is inspiring and it would pave the way for consolidation of rupee in the appreciating trajectory," Jaipuria said.
Engineering exporters' body EEPC India sought the RBI and government's intervention and said the recent appreciation in rupee led to an erosion in exports.
