Exports to US continue shrinking

Reflecting the deepening of troubles of Indian exporters, India’s exports to the US dropped to lowest level in more than a year in February. The recession-hit US imported goods worth a total $1.58 billion in February, the lowest in 14-months.

Consumer spending has fallen sharply in the US due to the ongoing economic crisis, resulting in erosion of demand for most of the imported goods. Nearly all countries which export to the US like China, Taiwan and other South Asian countries, have witnessed sharp decline in exports to US.

India’s average monthly exports bill had been over $2 billion a month before the start of financial crisis in September last year. Since then, however, it has been showing consistent decline and reached its lowest point of $1.58 billion in February this year.