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Page last updated at 08:29 GMT, Tuesday, 1 September 2009 09:29

Further decline in Indian exports

The Indian government is introducing measures to help lift exports

India's exports declined at an annual rate of 28% in July, the 10th month in a row of falls, after the weak global economy continued to hit demand.

The country exported $13.6bn (£8.2bn) of goods and services during the month, the official figures showed.

At the same time, India's imports were down 37% to $19.6bn in July.

Last week, the Indian government announced a series of measures to help exporters, including tax breaks and better access to finance.

'Pause for breath'

The latest export figures come a day after the Central Statistical Organisation said the country's economy expanded at an annual rate of 6.1% between April and June, up from 5.8% from January to March, lifted by government stimulus spending.
We remain hopeful that exports, particularly to the rest of Asia, will recover shortly
Robert Prior-Wandesforde, HSBC


A separate study on Tuesday showed that Indian manufacturing activity expanded at its slowest rate in five months in August.

The purchasing managers' index from banking group HSBC totalled 53.2 points in August, down from 55.4 in July. Any figure above 50 indicates growth.

HSBC senior Asian economist Robert Prior-Wandesforde said the weak manufacturing data was "more likely to represent a pause for breath than a peaking out of the industrial cycle".

"After all, there is still plenty more in the way of fiscal and monetary stimulus effects to come through to the economy, while we remain hopeful that exports, particularly to the rest of Asia, will recover shortly," he said.