Weak demand in the U. S. and Europe forced India to suffer a decline in exports for the eighth consecutive month in December 2012.

Exports in the final month of last year slipped 1.92 per cent to $24.8 billion, while imports jumped 6.26 per cent to $42.5 billion in the same month.

The figures added to the government's concerns over the current account deficit as the country's trade deficit soared to $17.7 billion during the month under review.

However, the government is seeing a silver lining in the pace of decline in exports. In November, exports had declined 4.17 per cent. The contraction in the percentage of fall in exports has raised hopes that the country could see marginal growth in exports in the January to March period.

Commenting on the figures, Commerce secretary S R Rao said that the government had slightly arrested decline in exports in December, and that new incentives would help improve the situation further.

Speaking on the topic, Rao said, "With a new set of incentives, which we get into force from January 1, we expect that in the current quarter (January-March 2013), there will be a further improvement in the export performance."

A. Sakthivel, chairman of Apparel Export Promotion Council, said the government should announce some more incentives in the budget to provide a boost to exports.