Amid uncertain global trade situation due to rising protectionism, Commerce Secretary Anup Wadhawan has said that the continuous contraction in India's exports may stop next year but the rate of growth will be subdued. He said the current slowdown in exports is mainly due to a decline in petroleum products, which constitute 13.42 per cent of overall outward shipments.
He mentioned that this decline is mainly on account of fall in petroleum prices which has driven the export value downwards. However, he asserted that the positive growth in the exports of non-conventional commodity groups like electronic goods, drugs, and pharmaceuticals, organic and inorganic chemicals, augurs well for future growth.
India's export growth is in the negative zone since August 2019 due to a steep fall in shipments of key sectors like petroleum, engineering and gems and jewellery. Labour-intensive sectors such as carpets, ready-made garments, handloom and leather too are recording decline in export growth.
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