Merchandise exports declined for the fourth month in a row in August at $22.3 billion, down 9.7 per cent over $24.7 billion in same month last year.
Imports in August declined 5.08 per cent to $38 billion ($40 billion), resulting in a marginal increase in trade deficit of $15.7 billion ($15.3 billion).
Commenting on the provisional trade data released on Thursday, Commerce Secretary S.R. Rao said there was a “slight glimmer of hope” after the dramatic 15 per cent fall in merchandise exports in July.
Asked what could have led to exports holding out even in the current depressing global trade scenario, Rao said that the new direction (incentives) given in the annual supplement to foreign trade was, perhaps, playing out.
More than ever, exporters are realising that they need to get their act together in the current weak global trade scenario, he added.
“Now they have found some sort of equilibrium. A ray of hope is emerging. Let us watch for couple of months more and the trend should be clearer,” he added.
He said a good monsoon should also permit India to export more petroleum products, where the country lost out heavily.
Rao expected a pick-up in petroleum product exports in the coming days.
The sectors that continue to show positive growth this fiscal are leather, marine products, tea, computer software (embedded), said Anup Pujari, Director General of Foreign Trade.
The sector that continues to perform poorly on the export front is iron ore, he added.