Exports shrink again, down 13.6% in January

In January, Oilmeal exports registered a maximum decline at 77.57%, followed by petroleum products at 35.18% and rice at 33.46% The Dollar Business Bureau

Imports fell by 11.01% to $28.71 billion in January this year, thereby bridging the trade deficit gap to $7.63 billion

  India’s exports slumped for 14^th straight month in January as outbound shipments of major commodities contracted by 13.6% to $21.07 billion from $24.93 billion a year ago. Imports fell by 11.01% to $28.71 billion in January this year from $32.26 billion in January 2015, thereby bridging the trade deficit gap to $7.63 billion. “Cumulative value of exports for the period April-January 2015-16 was $217.68 billion as against $264.32 billion, registering a negative growth of 17.65% over the same period last year,” Ministry of Commerce said in a statement. Oilmeal exports registered a maximum decline at 77.57%, followed by petroleum products at 35.18% and rice at 33.46%. Out of the 30 product categories, only 13 products managed to register a positive growth, notwithstanding the global slowdown and less demand from the major importing countries. “The trend of falling exports is in tandem with other major world economies. The growth in exports have fallen for USA (10.51%), European Union (9.48%) and China (7.01%) for November 2015 over the corresponding period previous year as per WTO statistics,” the Ministry of Commerce said. Expressing concern over the ongoing decline in the country’s commodity exports, Federation of Indian Export Organisations (FIEO) President S C Ralhan said, “The problem of transfer of shipping bill, verification of MEIS, delay in release of duty drawback and interest subsidy have seriously affected the liquidity of exporters. And government should ensure that the benefits announced through policy measures reach the exporters.” He also proposed the government to seriously review the slump in manufacturing growth, particularly the double-digit decline in capital growth manufacturing as it didn’t augur well for the country’s future exports prospects. Ralhan projected India’s total exports to reach somewhere around $260 billion in the financial year 2015-16. “However, looking at the exports globally, we are no exception as even leading exports nations have witnessed more or less the similar trend,” Ralhan said. Engineering Export Promotion Council (EEPC) Chairman T S Bhasin, too, attributed several reasons for the continuous decline and said, “It is not only the drop in commodity prices which has resulted in loss of value in the shipments, the demand in the global markets has also remained subdued. The fall in engineering exports by over 27% for January will have a negative impact on the jobs as well.”  

February 16, 2016 | 06:30pm IST