Imports too fell sharply by about 40 per cent to $16.2 billion, from about $26.7 billion last May. Of this, oil imports amounted to $4.1 billion, falling more than 60 per cent over last year due to the stark contrast in international prices of crude oil between then and now.

Non-oil imports, on the other hand, which have also been falling for a few months now, also fell 25.4 per cent to about $12.1 billion, down from about $16.2 billion last May. With such a sharp fall in imports, the trade deficit, too, automatically fell more than half to $5.2 billion from just over $11.1 billion in May last year.

The government had so far maintained the stand it they would be able to restrain the decline in exports by September but it took a more sombre view of the situation today with the commerce secretary saying that there are no signs of a recovery yet. Speaking to reporters here, commerce secretary Rahul Khullar said, “Of course, it (the continuous decline in exports) is a matter of concern... (overall) there are no signs of revival in the export demand yet.”

Khullar, however, added that the silver lining was that trade in gems and jewellery was picking up. The gems and jewellery sector was, perhaps, the worst hit because of the slump in external demand.

Industry body Federation of Indian Export Organisations (FIEO) reacted to the figures expressing concern over the possibility of a further increase in job losses and pressed for sops for the sector in the upcoming Union Budget to be presented by the finance minister Pranab Mukherjee next Monday.