Exports may remain flat USD 310 in 2016: ASSOCHAM
Updated: Jun 08, 2015 02:54:44pm
New Delhi, Jun 8 (KNN) India’s exports in the current financial year are likely to stay flat or may even move backward of USD 310 billion due to slow global demand for merchandise, said an ASSOCHAM paper.
The paper said the US is still not firm in growth as was witnessed in the first quarter of 2015 when its economy had contracted. Stronger dollar hit the US exports. In the Euro zone, it was somehow better in Q1 but it is quite puzzling and unsure. The emerging market pack remains in a challenging situation with China adding to the major woes.
“Overall the trade confidence is quite muted,” ASSOCHAM Secretary General, DS Rawat said, impressing on the government to move fast on improving ease of doing business and reduce the transaction costs for the Indian shipments.
Engineering products, gems and jewellery and petroleum products are the biggest contributors to the overall export basket in terms of value. In the previous fiscal, while engineering goods registered a modest increase, the other two segments have been witnessing sharp drop.
The trend is likely to continue at least for gems and jewellery, while the situation may somewhat stabilize for the petroleum segment since after seeing a sharp fall, the crude oil prices have stopped seeing much of drop. Petroleum exports are related to the prices of crude oil, it said.
Further, the merchandise exports are likely to average around USD 22-25 billion a month till the end of second quarter of the current fiscal. The shipments would improve thereafter, but the upside remains limited, the paper noted with concern. (KNN Bureau)
The paper said the US is still not firm in growth as was witnessed in the first quarter of 2015 when its economy had contracted. Stronger dollar hit the US exports. In the Euro zone, it was somehow better in Q1 but it is quite puzzling and unsure. The emerging market pack remains in a challenging situation with China adding to the major woes.
“Overall the trade confidence is quite muted,” ASSOCHAM Secretary General, DS Rawat said, impressing on the government to move fast on improving ease of doing business and reduce the transaction costs for the Indian shipments.
Engineering products, gems and jewellery and petroleum products are the biggest contributors to the overall export basket in terms of value. In the previous fiscal, while engineering goods registered a modest increase, the other two segments have been witnessing sharp drop.
The trend is likely to continue at least for gems and jewellery, while the situation may somewhat stabilize for the petroleum segment since after seeing a sharp fall, the crude oil prices have stopped seeing much of drop. Petroleum exports are related to the prices of crude oil, it said.
Further, the merchandise exports are likely to average around USD 22-25 billion a month till the end of second quarter of the current fiscal. The shipments would improve thereafter, but the upside remains limited, the paper noted with concern. (KNN Bureau)
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