After dropping by steep 15 per cent in July, India's merchandise exports suffered another decline of 9.7 per cent in August. It was the fourth month in a row when the country witnessed a declined in exports.

According to the released figures, the country's merchandise exports slipped to $22.3 billion in August, from $24.7 billion in the corresponding period of previous year.

Cumulatively, April-August exports declined 5.9 per cent to settle at $120 billion, from $127.6 billion in the corresponding period of the previous year.

Provision stats also showed that imports slipped by 5.08 per cent, from $40 billion to $38 billion during the same time. In spite of decline in imports, trade deficit jumped from $15.3 billion in August last year to $15.7 billion in August this year.

But as the rate of decline in exports have eased month on month, commerce ministry is optimistic that the situation is improving; however, commerce secretary S R Rao admitted that it would take some time for a clear trend to come out.

Speaking on the topic, Mr. Rao said, "Exports in August have given us a slight ray of hope after the dramatic fall in July. However, we have to watch for a couple of months for a clear trend to emerge."

Mr. Rao attributes the slower fall in exports in August to various measures announced in the foreign trade policy's annual supplement, and to stabilizing economic growth in the United States.