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Exports: 15 sectors out of 30 decline in December

Exports of half of the sectors out of the 30 closely monitored by the Commerce Ministry were in the negative zone in December due to a fall in global prices and demand. Outbound shipments of as many as 15 key sectors, including petroleum, engineering and leather, dipped last month, according to the ministry data. Exporters’ body FIEO said that although the pace of fall has moderated in December, the government should take steps in the Budget to boost the shipments. India’s exports declined about 15 per cent in December to $22.2 billion, pushing up the trade deficit to $11.66 billion, highest in the last four months. In November, it declined by 24.43 per cent. The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit. “The government should address the inverted duty structure in many sectors in the Budget besides exempting exports from service tax and create a export development fund,” Federation of Indian Export Organisations President S C Ralhan said. During the month, top two sectors-engineering and petroleum products-fell 15.68 per cent and 47.69 per cent respectively in December 2015. Gems and Jewellery exports too shrank by about 7.75 per cent to $2.46 billion in the last month. These three sectors made up about 55 per cent of the country’s total exports in 2014-15, when it stood at $310.5 billion. 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.
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