Commodity slump to hit exports

The World Trade Organisation (WTO) has lowered its estimate for world trade growth for 2015 by just 2.8 per cent in 2015 as against an earlier projection of 3.3 per cent,.

India has set a target to achieve $325 billion worth of exports in FY16 as compared to $312 billion reported during the previous fiscal year.

While speaking to reporters on the sidelines of fifth edition of the India Engineering Sourcing Show (IESS), Ravi Capoor, joint secretary, ministry of commerce and industry said, “We would be happy if we are able to achieve $300 billion worth of exports. The final figures would be something just less than $300 billion”.

Mr Capoor pointed out that the sharp fall in the prices of global crude oil prices have also led to a drop in India’s total export earnings.

“Petroleum products are one of our largest source of export earnings. While the quantum of exports have remained the same, the fall in prices have led to erosion in export earnings. THe gems and jewellery segment, another major component of our export earnings is facing the same problem,” he said and added that the government’s strategy on exports would be to give more focus on those sectors where the value additions are higher.

“Higher the value addition, the higher will be the premium,” Mr Capoor added. The official said that as Make in India has caught imagination of global investors, major conglomerates like the manufacturers of iPhone and iPad are expected to set up their facilities in the country and include Kubota , iPRO Solutions and Great Waters.