Prominent credit rating agency Moody’s forecasts large scale decline in Indian export within next six months. Indian exports will decrease following decline in demand in markets of developed nations including US and European countries.

Painting a gloomy picture for year 2009, Moody added, "A sharper slowdown in exports is expected in the first half of 2009, putting more downward pressure on the trade balance."

Demand of leather, textile and gems and jewelry has been declining in the international market due to drop in consumer spending. The Federation of Indian Export Organizations' President, A Sakthivel said, "Manufacturing sectors like leather, textile, gems and jewellery have been hit hard because of demand slump in the US and Europe."
 
Indian export registered 10 per cent decline in November, 2008. It stood at $11.5 billion in December as compared to $12.7 billion in November 2008. Indian trade deficit was recorded $10 billion following increase in import by 6.1 per cent.

The rating agency said that Indian import may fall in the first haft of next financial year due to heavy spending on infrastructure projects by government.

It added, "Both imports and exports are expected to moderate further in the first half of 2009, but inbound shipments may slow down at a milder pace because of continued infrastructure development, especially in the lead up to the 2010 Commonwealth Games."

The growth rate of Indian economy may further decline in next financial year under the impact of global slowdown. Prime Minister's Advisory Council has forecasted growth rate of 7.7 per cent for the financial year.