External Trade - Export growth slows on base effect:: Edelweiss

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Trade deficit narrowed to ~USD12.7bn in December from ~USD13.6bn in November. However, trade growth, both imports as well as exports, has moderated significantly; exports due to the deceleration in global growth and a high base effect and imports, reflecting the general industrial slowdown. Overall, we expect the slowdown in exports to be offset by a lower growth in imports, resulting in a trade deficit at roughly the current levels for the rest of the year. Importantly, trade deficit for Dec 10 was revised higher by a staggering three times, from ~USD2.6bn to ~USD8.1bn.