After witnessing double-digit growth for four months,exports growth slowed down to 5.86 per cent in November due to a decline in shipments of petroleum goods and rough diamonds. However,the trade deficit narrowed during the month as imports hit the lowest level in four years due to a sharp decline in gold import.
The trade deficit narrowed to $9.22 billion during November as imports declined 16.37 per cent during the month,commerce secretary SR Rao said while releasing the trade figures. Trade deficit stood at $10.56 billion in October.
Exports stood at $24.6 billion during the month as against $23.25 billion in the same month last year while imports stood at $33.83 billion,the lowest figure since March 2011.
Three product categories (petroleum goods,gems and jewellery and pharmaceuticals) have pulled down our exports, Rao said,adding that these sectors have a major share in the export basket. Rafeeque Ahmed,president,Federation of Indian Export Organisations,said that the single-digit growth does not reflect the true picture of exports as delays at one of the major ports has also contributed to the slowdown in exports.