Indian imports and exports experience contraction in November

Imports and Exports | | MIC Customs Solutions |

India experienced its 12th consecutive month of declines in exports during November, with imports also taking a sharp fall.

The performance of India's international trade sector has dipped during November 2015 amid ongoing signs of falling global demand.

New figures from the Indian government have shown a drop of just over 24 per cent in exports from the Asian nation during November, representing the 12th consecutive month of declines.

The $20 billion (£13.33 billion) figure for the month was down from $26.4 billion during November 2014, with this drop being the steepest seen for two years. Imports also declined by 30.26 per cent to $29.79 billion in November on a year-over-year basis.

This fall in imports impacted the country's trade balance, with its deficit falling to $9.78 billion, compared to $16.23 billion in November 2014, though the deficit was marginally higher than the $9.76 billion figure for October.

Key trends affecting the country's trade performance at present include the sluggish nature of global demand for Indian products, as well as the present overvaluation of the rupee. As with many countries in the region, the slow performance of the Chinese economy is also acting as a drag on growth, with declining imports from China and the devaluation of the Chinese currency deterring Indian exports.

However, Aditi Nayar, senior economist at ratings firm ICRA, expressed confidence that the trends seen in November will not be long-term issues, saying: "The shift in the festive calendar and the lower number of working days in November 2015 appear to have distorted the merchandise export shipment figures for that month, contributing to the widespread contraction across product categories."