Demonetisation and the subsequent dip in consumption resulted in a dip in the country's EXIM container trade volume growth for the January-March this year, a report said on Tuesday.
The container volume growth dropped to 7 per cent as compared to 10 per cent in the same period last year, it said, adding export growth stayed flat at 8 per cent while import expansion slid to 5 per cent from 13 per cent last year.
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This is largely due to a "short-term" decline in imports on the note ban effects, the AP Moller Maersk Trade Report said, adding the outlook is better.
"This dip in import growth was due to piling up of inventory in the market post demonetisation and lack of clarity around Goods and Services Tax (GST)," said Head of West Central Asia Trades at the container-shipping company, Franck Dedenis.
"India's EXIM trade forecast remains strong and we expect growth in imports in Q2 as the effects of demonetisation are expected to fade away," he added.
Imports of cash-sensitive products such as furniture, electronics and automobiles from China, United States and Germany have been hit by negative growth owing to "evolving economic reforms", the report said in a reference to the note ban exercise.
Imports from North America registered a negative growth of 9 per cent as compared to 29 per cent growth in the same period last year and waste paper demand declined due to note ban, while textiles and apparel, fruits, nuts and plastics showed some resilience, it said.
This impact of note ban led to a situation where exports outpaced imports, it said, adding despite the dip the country's performance was stronger than the global trade's 4-5 per cent growth in last two quarters.
On beef exports, it said the country is aiming for the top slot and has consolidated its position as the largest exporter of beef to Vietnam, from where it goes to the high consumption Chinese market.
