Exports contracted for the fourth month in a row in November, dipping 0.34 per cent to $25.98 billion, mainly on account of poor shipments of petroleum, gems & jewellery and leather products.
Imports, too, declined 12.71 per cent to $38.11 billion in November, narrowing the trade deficit to $12.12 billion, according to government data.
Gold imports increased 6.59 per cent to $2.94 billion in the month. The trade deficit stood at $17.58 billion in November 2018.
Fieo president Sharad Kumar Saraf said both domestic and global factors have led to this decline in exports. Prolonged trade tensions and protectionism along with sluggishness in economies across the globe have added to the woes of the export sector.
“The slowdown projected across the economies for the short-term and medium-term and the return to more normal trade relations among countries looks a mere probability. The currency volatility, besides the fluctuation in commodity prices, including crude prices, have also led to the decrease in the exports of petroleum, which is a major constituent of India’s exports,” he said.
EEPC India chairman Ravi Sehgal said though engineering exports have put up a reasonably good show with 6.32 per cent growth in November 2019, the overall external trade environment remains challenging and subdued.
Cumulatively, during April-November 2019, exports were down 1.99 per cent to $211.93 billion.