Indias exports shrank 10.78 per cent to $23.69 billion in September,fifth month in a row,reflecting the shaky recovery in the traditional markets like the US and the EU.
Weak global demand impacted imports too,which,after a decline of four months,grew by 5.09 per cent during the month,widening the trade deficit to a 16-month high of $18 billion during the month. Trade deficit stood at $13.1 billion during the same period last year. Such a huge trade gap was in May 2011,when the deficit reached $18.4 billion.
Imports stood at $41.77 billion as against $39.8 billion during the same period a year ago. The contraction in global demand and deceleration in manufacturing are primary reasons for decline in exports, Federation of Indian Export Organisations president Rafeeque Ahmed said adding that the situation may improve in the second half of the fiscal.