From a growth of 10.07 per cent in March, exports slid and registered a minuscule increase of 2.09 per cent in April compared to the same month in 1998. Cumulatively, exports grew by 6.09 per cent in April-May 1999 compared to April-May 1998.

Imports during May are estimated to have gone up by a mere 1.64 per cent at $3.55 billion against $3.49 billion in the previous corresponding month. This indicates that demand recession in the economy is continuing with imports of capital goods sector falling sharply.

Since November last, exports have been showing positive growth which continued up to March this year, reversing the negative performance in the first half. The year ended with a growth of 3.7 per cent against a 20 per cent rise envisaged at the beginning of the year.

Thenone-too-happy performance was due to the impact of the currency meltdown in south-east Asia. The import growth of some of the countries in the south-east Asian region turning positive together with the demand pick up in the European Union has prompted the commerce ministry to fix a 11 per cent export growth target for the current fiscal.

Trade deficit during April 1999 shrunk to $523.76 million compared to $876.80 million in April 1998 as imports came down sharply by 8.66 per cent.

During the Eighth Plan, exports registered a growth of over 18 per cent to 21 per cent in dollar terms only during 1993-94, 1994-95 and 1995-96. In the remaining two years, i.e 1992-93 and 1996-97, growth was 3.8 per cent and 4.01 per cent respectively.

The export growth rate decelerated by 1.5 per cent in 1991-92, while imports declined due to import compression measures initiated by the Congress government immediately after the reforms.

The export growth recorded in the first year of the Ninth Plan, 1997-98, was by farthe lowest.

India's trade deficit dropped from $3.34 billion in 1992-93 to $1.06 billion in 1993-94, but increased to $2.02 billion in 1994-95, $4.53 billion in 1995-96, $5.44 billion in 1996-97, $6.79 billion in 1997-98 and $8.24 billion in 1998-99.