India's exports contract, but trade deficit falls to five-month low

September import growth was the second lowest this fiscal year, after the April growth figures of 4.6 per cent, bringing the trade deficit down to $13.98 billion

Exports declined for the first time this financial year, by a moderate 2.15 per cent at $27.95 billion in September, despite rupee depreciating against the dollar. However, this could not widen the trade deficit, which fell to a five-month low as the pace of import growth also slowed. 

Economists are apprehensive that the trade deficit will again widen, putting pressure on the current account deficit (CAD), in spite of import curbs announced by the government. 

Imports rose by 10.45 per cent at $41.9 billion in September, against 25.41 per cent in August. September import growth was the second lowest this fiscal year,