According to the latest figure released, the total exports from the country in the month of June has fallen 5.45 per cent, mainly due to low demand form developed markets in Europe and the US.
The commerce and industry ministry released the figures on Friday that showed that the country’s exports during the month were $25.07 billion compared to $26.51 billion compared to the same month of 2011.
The imports into the country also fell in June, adding pressure on the government that is looking to revive economic growth after the business sentiment crashed in the country. The total imports into the country during the month fell 13.5 per cent to $35.37 billion. This means that the country recorded a smaller trade deficit of $10.3 billion during the month.
Commerce secretary S R Rao said, “World over, there has been a tremendous dip in world trade. In the euro zone, we don't see any finality. Apart from distress in Greece, now we find that both in Spain and Italy also, their borrowings are more than their actual GDP.”
Analysts say that the slowdown in the economy in general and a fall in industrial output and foreign trade points could add pressure on the government o take steps to revive growth. The central bank might help business sentiment by lowering its interest rates during its policy review on 31 July.
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