Thursday, 7 January 2016

India :Exports set to dip 13% this fiscal

Exports are expected to decline about 13 per cent to $270 billion in the current financial year because of a global demand slowdown and fall in crude prices, a top official said today.
Merchandise exports had aggregated $310.5 billion last fiscal.
Commerce secretary Rita Teaotia in her presentation during an interaction with the industry chambers, including the CII and Ficci, said it would be difficult for exports to exceed $270 billion, an official said.
 In 2008-09, outbound shipments were less than $270 billion, according to exporters body the Federation of Indian Export Organisations (FIEO). It was around $210 billion in 2008-09.
Teaotia has also said that imports during the fiscal would stand around $390 billion. So the trade deficit would aggregate at $120-125 billion in 2015-16.
During April-November this fiscal, exports declined 18.46 per cent to $174.3 billion. Imports were $261.8 billion and trade deficit was at $87.5 billion.
The declining exports would have implications for the job market. The numbers assume significance as recently the government had said that there is “no crisis” in India on the export front and there is “no need for alarm”.
“If exports of petroleum products are excluded, then the decline is only 9.6 per cent in dollars,” the ministry had said.
During the meeting, which was chaired by commerce and industry minister Nirmala Sitharaman, the chambers suggested ways to boost manufacturing, exports and overall economic growth.

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