Amid global demand slowdown, India’s export for the top five sectors which includes engineering, petroleum, gems and jewelery, textiles and pharmaceuticals declined by 25% to $13.33 billion in the month of August. According to the data released by the Commerce Ministry, during the month, engineering and petroleum exports contracted by 29 percent and 47.88 percent, respectively while textiles sector recorded a negative growth, gems and jewellery and pharmaceuticals on the other hand registered a marginal growth of 2.66% and 6% respectively.
In the last financial year, these five sectors have accounted for about 65% of the country's total merchandise exports where the exports of these segments stood at $202.15 billion. In August last year, exports of these sectors stood at $17.79 billion. The country's total exports were at $310.5 billion in 2014-15. Federation of Indian Export Organisations (FIEO) too has said that these are labour intensive sectors and government should announce steps to contain the dip in outbound shipments.
Indian exports extending its decline for the ninth month in a row, plunged 20.66 percent in August at $21.26 billion. The significant fall in country's exports was attributed to global slowdown and declining commodity prices worldwide. Concerned over continued decline in exports, the Commerce Ministry will hold a meeting of exporters on October 7 to discuss ways to contain the plunge in the outbound shipments. Issues related to higher cost of credit which is impacting country’s exports and ways to reduce the transactions cost for exporters are expected to be discussed in the meeting
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