'Fall in global demand, dip in oil prices impacting exports'

Source: PTI

Fall in global demand, dip in oil prices and appreciation of rupee against euro are some of the main reasons for decline in India's exports, Parliament was informed on Friday. Contracting for the seventh month in a row, India's exports dipped by 15.82% in June to $22.28 billion. The main reasons for the decline are "fall in global demand and fall in commodity prices, impacting terms of trade for commodity exporters", Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. Fall in crude oil prices has resulted in consequent decline in prices as well as export realisations for petroleum products. They are major product items of exports for India, she said, adding that fall in demand of precious goods like pearls, precious and semi-precious stones, especially from oil producing countries is also one of the main reasons. "EU countries that account for nearly 16% of India's exports are facing problems of stagnation and deflation. The appreciation of the rupee against the euro has adversely impacted India's exports to EU countries," she said. Trade deficit as a percentage of GDP has declined from 10.7% in 2012-13 to 7.9% in 2013-14 and 7% in 2014-15, she said. The minister informed that the maximum exports was from Maharashtra (23.47% of the country's total exports in 2014-15) followed by Gujarat (19.2%), Tamil Nadu (8.85%) and Karnataka (7.61%). India's share in world trade as per WTO is 2.06% in the last fiscal. The minister said the government is continuously monitoring the export performance of different sectors to different countries and takes need based measures from time to time.      

July 24, 2015 | 8:03 pm IST.