India’s exports growth remained almost flat at $27.93 billion in December, mainly on account of global trade tensions.

According to trade data released by the commerce ministry, exports grew at the slowest pace in three months at 0.34 per cent in December, while imports entered the negative zone, registering a decline of 2.44 per cent to $41 billion.

Declining imports have narrowed the trade deficit to a 10-month low of $13.08 billion in December as against $14.2 billion in the same month in 2017.

The last time imports had plunged into the negative territory was in September 2016, when it had dipped by 2.54 per cent.

The import of gold too contracted by 24.33 per cent to $2.56 billion in December.

During the month under review, several key export sectors recorded negative growth. It includes engineering goods, gems and jewellery, leather, pharmaceuticals, marine products, iron ore, tea and coffee.

Commenting on the figures, the Federation of Indian Export Organisations (FIEO) said the marginal growth in exports was due to uncertain global cues and challenges on the domestic front.

“China’s exports contracted in December 2018, highlighting fragile global conditions. The weak global economic outlook are showing no signs of respite,” said FIEO president Ganesh Kumar Gupta.

Engineering Export Promotion Council chairman Ravi Sehgal said the unfolding global situation comprises not only problems on account of trade tensions between China and the US, but also other issues like uncertainty over the Brexit fallout in the European markets.

“The situation certainly calls for a major rethink and redrawing of our export strategy,” he said.

However, cumulatively during April-December this fiscal, exports grew by 10.18 per cent to $245.44 billion. Imports rose by 12.61 per cent to $386.65 billion.

The trade deficit widened to $141.2 billion during the nine months of the current fiscal from $120.57 billion in April-December 2017-18.

Oil imports in December rose by 3.16 per cent to $10.67 billion. During April-December, imports grew by 42.85 per cent to $108.10 billion. Non-oil imports during the period increased by 4.06 per cent to $278.54 billion.