Trade deficit narrows though export growth loses momentum : CII

The December 2013 trade deficit for India came in at USD 10.14 billion versus USD 17.19 billion in the same month last year. The reduction was driven by a 15.25 percent fall in imports, which came in at USD 36.49 percent while exports grew at 3.5 percent to USD 26.35 billion.

Though exports rose 3.49 per cent from year-earlier levels to USD 26.35 billion but it seems to have lost momentum as exports had been growing at a double-digit rate until October.

"The economic conditions in the U.S. and the euro zone are not very favorable for exports and we hope the Indian government will help the exporters by providing help by way of including more products and countries for Focus Product Scheme and Focus market Scheme, where we have a comparative advantage," said Sanjay Budhia, Chairman, CII Export Committee.

"Also we need to relook at the duty drawback rates. These measures, if announced at the earliest will give the necessary push to the industry which can then benefit the industry and help them reach the export target," added Budhia.