Exports of 17 sectors in negative zone during March

The Dollar Business Bureau

Out of the 30 sectors monitored by the Ministry of Commerce, exports from 17 sectors were in the negative zone during the month of March. This is mainly due to the dip in international commodity prices and weak demand. The 17 key sectors include petroleum products, man-made yarn and fabrics, textiles, leather items and engineering goods.

India aims to increase its share in global exports from 2 percent to 3.5 percent by enhancing the exports of goods and services to $900 billion by 2020. But the exports from the country have dipped for the 16th straight month in a row. Indian outward shipments decline 5.47 percent to reach $22.71 billion in March, Federation of Indian Export Organisations (FIEO) said.

As per the recently released trade data, engineering and petroleum are the two major sectors dipped 11.29 percent and 21.43 percent, respectively. Gems and jewellery exports has seen a marginal growth of 4.61 percent. These three sectors together constitute over 55 percent of the total exports from the country.

Expressing concerns over the data, FIEO President S C Ralhan said, "Nearly all the main sectors have either revealed a negative growth or a decreasing trend during the last three months. The government should undertake proper steps to correct this constant decline in exports.”

“If not corrected, this dip in exports is expected to show impact on jobs of related sectors and may put pressure on the current account deficit (CAD). The order book position of exporters is not good. Going forward, this trend may result in job losses," Ralhan said.

During March, there is a negative growth in the exports of agriculture related products that comprise about 10 percent of the total shipments. Out of 13 major agriculture products, nine have come into the negative zone. Exports of rice, cashew and oil meals have dipped 27.67 percent, 17 percent and 72.3 percent, respectively. Cereals, oil seeds and marine goods are some of the other products that have seen a negative growth.

The decline in agri-products has resulted in bringing down the overall merchandise exports from the country by 15.85 percent to $261.13 billion in 2015-16. This is the lowest in the past five-year period. Pharmaceuticals, plastic, carpet, chemicals and tea are some of the products that have seen a positive growth in March.