Exports in 17 out of 30 sectors plunge in January 2016

Amid fall in global prices and demand, exports of over half of the sectors out of the 30 closely monitored by the Commerce Ministry were in the negative zone in the month of January 2016. Outbound shipments of as many as 17 sectors, dipped last month. According to the data of the Commerce Ministry, top two sectors - engineering and petroleum products contracted 27.6 percent and 35.18 percent, respectively during the month. 

Further, agri-products, which constitute over 10 percent of the country's total shipments, too recorded a negative growth during the month under review. Overall, eight out of 13 main agriculture products slipped into negative territory.  Exports of rice, cashew and oil meals fell 33.46 percent, 24.6 per cent and 77.5 percent, respectively. 

On the other hand, exports of pharmaceuticals, plastic, carpet, tea and coffee have recorded positive growth in January 2016.  Exporters' body Federation of Indian Export Organisations (FIEO) has said that in order to boost the shipments, the government should announce incentives in the Budget. It said that the inverted duty structure in respect of various items may be given due consideration in the Budget as it not only effects exports but also the manufacturing sector.

India’s merchandise exports extending its decline for the fourteen months in row, plunged by 13.6 per cent in January 2016 at $21.07 billion as against $24.39 billion in January last year. Decline in these exports has been instrumental in dragging down India's overall merchandise exports. Due to continuous dip, the total merchandise shipments are expected to reach a figure of $270 billion in 2015-16.  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 percent from 2 percent.