Declining exports reflection of contraction in global trade: FIEO

New Delhi, Aug 13 (KNN) Reacting to the Trade Data for the month of July, 2016, S C Ralhan, President, FIEO said that the decline in exports reflect the contraction in global trade. Moreover, leading exporting countries like China also witnessed similar decline in the month of July, 2016.‎

President FIEO said that global trade uncertainties are increasing and Brexit has further compounded the same.

After rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84% due to decline in shipments of engineering goods and petroleum products.

Gold imports, which till recently was a matter of concern for the government, more than halved to $1.08 billion (Rs 7184.97 crore) in the month.

Ralhan further added that the decline in exports of Engineering goods, Leather and Textiles is major concern as these are high-employment intensive sectors of exports.

“The package given to the Textiles sector will take some time before its effect is visible in exports. The new GST regulation will add to the competitiveness of exports through better rebating of taxes though many of the concern of the export sector needs to be addressed in the model GST law,” he added.

FIEO President explained that the logistics cost is also likely to come down through a single market approach benefiting the export sector.

Merchandise exports totalled $21.69 billion (Rs 1.44 lakh crore) in July as against $23.28 billion (nearly Rs 1.55 lakh crore) in the same month last year. (KNN Bureau)