After continuous fall for 18 months, exports return to growth

New Delhi, July 16 (KNN) India’s merchandise exports rose 1.27 per cent year-on-year in June to $22.57 billion, reversing a trend that started in December 2014 due to weak global demand and a fall in commodity prices, government data showed.

During June, 2016, exports were valued at US$ 22572.30 million (Rs.151904.56 crore) which was 1.27 per cent higher in Dollar terms (6.72 per cent higher in Rupee terms) than the level of US$ 22289.43 million (Rs. 142341.88 crore) during June, 2015. Cumulative value of exports for the period April-June 2016-17 was US$ 65311.77 million (Rs.436960.98 crore) as against US$ 66690.90 million (Rs.423315.24 crore) registering a negative growth of 2.07 per cent in Dollar terms and positive growth of 3.22 per cent in Rupee terms over the same period last year, said the Commerce  Ministry in a release.

Meanwhile, imports during June 2016 slid 7.33 per cent to $30.69 billion. Gold imports fell 38.5 per cent to $1.2 billion, while oil imports contracted 16.4 per cent to $7.2 billion.

A growth in exports combined with a contraction in imports helped narrow the trade deficit in June to $8.1 billion from $10.8 billion in June 2015.

However, on a month-on-month basis, trade deficit has widened in June from $5.8 billion in May.

Reacting to this, S C Ralhan, President, FIEO said that positive figure has instilled optimism among the exporters though global scenario remains challenging.

President FIEO said that positive exports by Engineering, Marine, Drugs and Pharma, Plantation commodities, Electronic goods, Carpets and Handicrafts sectors is very encouraging as these are high employment generating sectors as well. 

Decline in Gems and Jewellery and Apparel exports, though marginal is a cause of concern. However firming of the Gold prices and the new package given to the Textile and Apparel sector will lead to better results in short span of time.

Ralhan said that the Brexit and consequent depreciation of British Pound has put Indian exporters in a difficult situation particularly the smaller ones who have not hedged their currencies. Moreover Brexit is expected to put pressure on Euro as well. Indian exports may face little challenge on account of volatility in currency and increasing competition from low cost East European Economies. (KNN Bureau)