New Delhi, Dec 1 (KNN) The decline in exports was more moderate and early signs of a turnaround are visible in respect of readymade garments, drugs and pharmaceuticals and electronics, said RBI Governor Raghuram Rajan while announcing the Fifth Bi-monthly Monetary Policy Statement, 2015-16.

In the external sector, exports contracted for the eleventh month in a row to October, indicative of the persisting weakness in global trade.

“Excluding petroleum products (PoL), however, the decline in exports was more moderate and early signs of a turnaround are visible in respect of readymade garments, drugs and pharmaceuticals and electronics,” he said.

With global commodity prices, especially those of crude, softening further, both PoL and non-PoL exports continued to contract, with the latter shrinking for the fourth consecutive month.

“The decline in bullion imports despite the festival season helped narrow the trade deficit in October as well as over the financial year so far, moderating the current account deficit further. Net foreign direct investment (FDI), external commercial borrowings and accretions to non-resident deposits have risen in relation to last year; however, portfolio outflows from both debt and equity segments rose in November,” he said.

During 2015-16 (up to November 20), there has been an accretion of US$ 10.8 billion to the foreign exchange reserves.

India's exports declined for the 11th month in a row by registering a dip of 17.53 per cent in October to$21.35 billion. 

Exports contracted due to steep decline in shipments of petroleum products (57 per cent), iron ore (85.5 per cent), engineering (11.65 per cent) and gems and jewelery (12.84 per cent) amid a global demand slump. 

The cumulative exports during April-October this fiscal came down by 17.62 per cent to$154.29 billion as against $187.2 bill. (KNN Bureau)