The recession-hit Indian Export sector, for the eighth consecutive month, reported a decline of 29%, with exports in May standing at $11 billion. The recent fall brings hope for the export industry, with the Union government set to present the union budget on July 3. The government is likely to provide some relief to the industry, easing credit rates and slashing taxes, as recently pointed out by the Commerce and Industry Minister Anand Sharma.

Mr Sharma expected better times ahead for the export industry, as the market has started to show signs of recovery. He said: "The second half of 2009-10 would be better for exports."

The FIEO consortium of exporters has urged the government to take some measures to alleviate the troubled export sector, in a bid to arrest further job losses. The FIEO president, A Sakthivel said: "If the government provides necessary support, exports may show positive growth from October this year, though double-digit growth will only be seen in 2010."

Meanwhile, imports too declined about 39.2% to $16.2 billion, primarily, on accounts of decrease in oil import. The country imported oil worth $4.13 billion in May, which is 6 per cent lower than the corresponding figures a year earlier.