Exports from labour intensive sectors show decline

New Delhi, May 4 (KNN) The country’s exports from the major job creating labour intensive sector, including textiles, leather and gems and jewellery have shown decline indicating on a need to have policy reforms for their revival.

Exports from these manufacturing sectors have continued to show low growth in 2017-18, despite the fact that such sectors have managed to regain the losses from previous years.

Also, the decline has happened when India’s outbound trade managed to rise above the USD 300 billion target after 2 years and spurred by a rise in global demand, according to official data.

According to rating agency CRISIL lack of competitiveness is one of the main causes of decline in exports from labor intensive sector.

The USD 36 billion textile export sector, registered only 0.75% growth in the year 2017-18, after contraction in the past 2 years.

In the last financial year, the apparel manufacturing sector registered a decline for the 11th straight month in March 2018.

The above figure indicates an ongoing shrinkage in the industry which employs 12.9 million workers.

The gems and jewellery sector has also been facing the hardships eversince the Nirav Modi scam as public sector banks have clamped down on loans and banned the export of gold products with purity above 22 carats, to reduce irregularities in trade. (KNN/YV)