Indian exports unlikely to improve soon: DBS
The Dollar Business Bureau
In the financial year 2015-16, India’s exports decreased by 16%, and may not improve soon due to a slump in global trade claimed DBS report.
According to DBS, slowdown of global demand influenced Indian exports. Additionally, the strengthening of the rupee and weak commodity receipts performed their roles.
Meanwhile, the International Monetary Fund and World Bank have demoted their outlook towards global growth, wherein many of India’s trade partners are going through a stagnant phase.
"More measures to support the trade sector are on the cards,” said the report, while adding that the measures may give short-term relief to the external trade sector but not provide a universal solution.
In March, exports dropped by 5.47% to $22.71 billion, marking a consecutive 16th month drop amidst reduced consignments of petroleum and engineering products with a lukewarm global demand.
Deficit in trade plunged to $5.07 billion in March as imports shrunk by 21.56% to $27.78 billion. The balance between exports and imports, which is known as trade gap, accounted for $11.39 billion in March 2015.
India’s exports have been playing weak for several months’ despite a strong GDP and rising inflows from FDI.
Earlier this week, Finance Minister Arun Jaitley expressed concerns over growth of exports, which have been facing a straight decline for more than a year due to a global slump.
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