India’s exports in November grew 3.87 percent to $22.32 billion year-over-year, the lowest growth rate in two years.
Total exports from April through November, the first eight months of fiscal 2011-12, increased 33.2 percent to $192.7 billion from a year earlier.
“The poor showing in November was mainly on account of the weak demand for Indian goods in the traditional markets such as the European Union and the U.S.,” a Commerce Ministry official said.
Imports for November expanded 25.6 percent to $35.9 billion year-over-year, creating a trade gap of $13.6 billion.
Overall imports during April to November surged 30.2 percent to $309.5 billion, expanding the trade gap for the eight-month period to roughly $116.8 billion.
Based on current indications, the trade deficit for fiscal 2011-12, which ends March 31, is expected to reach $155 to $160 billion. The ministry expects exports to in the fiscal year to grow 6.7 percent.
“To boost exports and arrest the trade deficit, the government should provide export finance at concessional rate of not more than 7 percent for small and medium export segment, and 9 percent for large business houses,” a representative of the Federation of Indian Export Organisations said.
India, one of the world’s fast-growing economies, exported $246 billion in goods in fiscal 2010-11, which ended March 31, and has set an export target of $500 billion by 2014.