The RBI on Tuesday said that exports growth in November and December 2018 remained lacklustre mainly due to high base effect and low global demand.

Export growth on a y-o- y basis was almost flat in November and December 2018, primarily due to a high base effect and weak global demand, said the central bank in its final monetary policy review of the current fiscal.

While growth in exports of petroleum products remained positive, non-oil exports declined, dragged down by lower shipments of gems and jewellery, engineering goods, meat and poultry, it said.

Import growth slowed in November and turned negative in December 2018, it pointed out.

While imports of petroleum (crude and products) rose in line with the increase in import volumes, non-oil imports such as pearls and precious stones, gold, electronic goods and transport equipment, recorded declines, RBI added.

The merchandise trade deficit for April-December 2018 was a shade higher than its level a year ago.

Net services exports picked up in October and November 2018, which combined with low oil prices, could have a salutary impact on the current account deficit in Q3.

On the financing side, net FDI flows to India during April-November 2018 were higher than a year ago.

Foreign portfolio flows turned negative in January 2019, after rebounding in November and December 2018. India’s foreign exchange reserves were at US$ 400.2 billion on February 1, 2019, RBI said.