The growth in India's exports is unlikely to improve in coming months as global demand is expected to remain weak, experts today said.
The fall in exports, particularly in the engineering sector for several months in a row, is worrying, Engineering Export Promotion Council (EEPC) said in a statement.
"Exports are a crucial component of GDP and overall job-creating activity, and the onus must now be on the finance minister to be liberal with export incentives without waiting for the Budget. February end will be too late," it said.
Richa Gupta, Senior Director, Deloitte, in India too said trade situation is not likely to gain traction.
"Overall, we do not see the trade situation improving much in coming months as global demand is expected to remain weak. Export revival would also be difficult as other emerging markets try and export their way out of the latest slowdown," she said.
India's exports contracted for the 13th straight month, dipping about 15 percent in December to USD 22.2 billion due to a steep decline in engineering and petroleum shipments.
Chief India Economist and Director, Religare Capital Markets, said: "For this fiscal, our estimate for exports, imports and trade deficit is USD 253 billion, USD 383 billion and USD 130 billion, respectively."