New Delhi, Apr 6 (KNN) Ahead of the announcement of the annual supplement of the foreign trade policy, the industry body ASSOCHAM said the export sector in country is not looking good and there is case for government to incentivize the export sector.

 “Prospects for the merchandise exports do not seem very promising in the face of the US disappointing the financial markets with disappointing job data. The indicators showed that the US recovery still faces bumps with significant implications for the rest of the world,” said an ASSOCHAM survey.

The micro, small and medium enterprises accounts for 36 per cent of merchandise exports and any setback on account of this create a negative impact on the small business people.

Imports, on the other hand, are increasing at a much faster rate creating problems for the Current Account Deficit which would be well above five per cent of the GDP for the fiscal 2012-13. As a percentage of the GDP, the imports would be close to one-third.

In the first 11 months of the last financial year, exports fell four per cent to  USD 265.95 billion, while imports grew a mere 0.25 per cent to USD 448 billion, leaving a trade deficit of USD 182.1 billion. (KNN)