Exports slide show goes on; dip 15% in Dec 2015
India’s exports fell for the 13th straight month in December amid a global slowdown, falling commodities and oil prices and further devaluation of Chinese currency. Outbound shipments contracted by 14.75% to $22.29 billion in December as against that of December 2014. Despite the decline, the industry is quite optimistic about the December exports data. In November, outbound shipments had shrunk by 24.43% to $20 billion. Among the top traded commodities last month, 15 out of 30 product groups have shown positive performance as against 7 out of 30 in November 2015. Out of the 15 items, five have achieved an impressive growth of over 25% growth. Jute manufacturing including floor covering exports cloaked an impressive growth of over 135%, followed by spices with 34%, handicrafts with 27%, tea with 25% and fruits and vegetables with 24% growth rate. “Export figures which reflected the continuous decline for more than over a year now, seem to be now gaining the lost ground,” said S C Ralhan, President, Federation of Indian Export Organisations (FIEO). China’s December exports data showing positive growth has further given signs of encouragement to the Indian industry. The country’s imports also plunged 3.88% to $33.9 billion in December 2015, against $35.33 billion in the same month a year ago. The overall exports during April-December 2015 were $196.60 billion, while total imports during the period were $295.81 billion. This led to a trade deficit of $99.20 billion. However, the trade gap was lower than $111.68 billion recorded during the same period of the previous fiscal. “Global demand does not seem to be picking up. With only countries like US showing little signs of improvement, this does not augur well for the country’s export sector in the long-run,” Ralhan said. The Engineering Exports Promotion Council (EPEC) also expressed concerns over the continuous decline in the country’s outbound shipments, most notably in the engineering exports— the largest contributor to the country’s export basket— and asked the government to introduce more incentives for exporters before the Budget. “Exports are a crucial component of the GDP, and the onus must now be on the Finance Minister Arun Jaitley to be liberal with export incentives without waiting for the Budget. February-end will be too late,” EEPC Chairman T S Bhasin said. Bhasin also insisted that the government should announce a special interest rate dispensation for exporters and extend the benefits announced for startup entrepreneurs to SME exporters.
January 18, 2016 | 04:10pm IST
to success.