Amid fall in global prices and demand, Exports of 15 of the sectors out of the 30 closely monitored by the Commerce Ministry were in the negative zone in the month of December 2015. According to the data of the Commerce Ministry, top two sectors - engineering and petroleum products contracted by 15.68 per cent and 47.69 per cent, respectively during the month. Besides, the exports of Gems and Jewellery too shrank by about 7.75 per cent to $2.46 billion in the same month.
Further, agri-products, which constitute over 10 per cent of the country's total shipments, too recorded a negative growth during the month. Overall, seven out of 13 main agriculture products slipped into negative territory. Exports of rice, cashew and oil meals fell 35.58 per cent, 15.38 per cent and 83 per cent, respectively. Other products that have reported a negative growth include cereals, oil seeds, fruits and vegetables, marine products and iron ore.
On the other hand, exports of pharmaceuticals, textiles, plastic, carpet, chemicals, tea and coffee have recorded positive growth in December 2015. Exporters' body Federation of Indian Export Organisations (FIEO) has said that though the pace of fall has moderated in December, the government should take steps in the Budget to boost the shipments. It said the government should address the inverted duty structure in many sectors in the Budget besides exempting exports from service tax and create an export development fund.
Reflecting sluggish global demand, India's merchandise exports contracted for the thirteenth consecutive month in December, registering 14.75% decline over last year to $22.2 billion, pushing up the trade deficit to $11.66 billion, highest in the last four months. The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit. India has aimed at taking exports of goods and services to $900 billion by 2020 and raising the country's share in world exports to 3.5 per cent from 2 per cent.