It is reported that India"s exports declined for the first time in 7 years as recession in its biggest markets in the US and Europe damped demand for the nation"s products.

India government recently said that overseas shipments in October down by 12.1% to USD 12.8 billion from a year earlier. The last time exports fell was in October 2001, when they down by 7.4%.

As per report, India"s exports in the 7 months ending on October 31st increased 23.7% from a year earlier to USD 107.8 billion. Imports increased 36.2% to USD 180.8 billion. That brings the trade deficit to USD 72.9 billion compared with USD 45.6 billion in the same period a year earlier.

The Reserve Bank of India last month announced steps to inject INR 220 billion into the financial system to help exporters. Among the steps it announced, the central bank agreed to extend the period for subsidized pre shipment credit to 9 months from 6 months and increased the export refinance limit for commercial banks.