Continuing the previous nine months negative trend, Indian exports have seen a decline of over 26% in July.

The drop in export for the consecutive tenth month clearly signifies the narrowing of overseas demand as an outcome of slowdown in global markets.

At a CII meet, Mr. Rahul Khullar, Commerce Secretary said that cumulative exports were 26% down as compared to July previous year.

He also said that he would wait for September data for his final jugdement on the future outlook.

Commerce Ministry’s data revealed exports dropping to $12.81 billion. Exports have been falling down since September last year as the global financial crisis deepened.

Imports have also witnessed fall by 36% for the seventh successive month. This 36% fall has contracted the trade deficit to $5.8 billion as against $12 billion in July 2008. According to estimates of commerce ministry there were $18.3 billion imports recorded in July 2009 as against $29 billion in July 2008.

The Foreign Trade Policy which is to be announced on August 27, is supposed to provide incentives and some reliefs for the nation’s exporting community as no recovery in global demands is still expected.