Country's exports reported 10 per cent decline in November, 2008. It stood at $11.5 billions as compared to $12.7 billion in November last year. However, imports increased 6.1 per cent in the same period, leading to a trade deficit of $10 billion.

Country's cumulative exports grew by 19.4% for the period of April-November while the same period posted 33% surge in the imports, leading to a trade deficit of $84.34 billion as compared to $53.19 billion in the same period of 2007-08.

Low demand of leather, textile and gems and jewelry in the US and the European markets helped to shrink the Indian exports during the period. World is facing tough economic conditions leading to the drop in consumer spending. The president of the Federation of Indian Export Organizations, A Sakthivel said, "Manufacturing sectors like leather, textile, gems and jewellery have been hit hard because of demand slump in the US and Europe."

An official of trade and commerce ministry said that Indian exports depend on the markets of US and Europe which are facing serious financial crunch. Exports may further decline in the coming times following more severity of global financial crisis. Large scale retrenchments and production cuts are also possible in the labor incentive industries such as textiles, handicrafts, and gems and jewellery.

Country's oil imports increased during November 2008 and valued at $7.254 billions while the non-oil imports stood at $14.318 million with an increase of 3.4 per cent in the same period last year. Its annual growth rate remained at 7.8 per cent in the first half of the financial year as compared to 9.3 percent last year.