New Delhi: Indian exports have declined for fifth straight month in April casting shadow on the manufacturing sector in the country. Exports contracted by 14 per cent in April to $22 billion, due to the global slowdown, dip in crude oil prices and the strengthening rupee. The slowdown in exports, which account around 16 per cent of the Indian economy, will also impact GDP growth.
The main exporting sectors, including petroleum products, gems and jewellery and man made yarn and fabrics, reported a negative growth in April. Imports too declined by 7.48 per cent to $33 billion, leaving a trade deficit of $11 billion in April.
Federation of Indian Export Organisations (FIEO) president S.C. Ralhan said that the prime reason for falling exports continues to be softening of crude, metal and commodity prices. “Petroleum exports is still showing a decli-ne of 46.5 per cent wh-ich itself is responsible for an overall decline of nine per cent, as the sector used to contribute to 20 per cent of country’s exports,” said Mr Ralhan.
He said it is worrying to see negative growth in gems and jewellery, electronics and plastic goods as domestic capabilities are being augmented in these sectors. “However, increase in exports of engineering, handicrafts, carpets, pharmaceuticals, organic and inorganic chemicals is very positive development as most of these sectors were exhibiting a decline from January, 2015 onwards,” he said. He feels that exports to oil producing countries might have taken a hit.
