Exports Seen Sharply Lower at $260 Billion in FY16: Trade Body

Exports Seen Sharply Lower at $260 Billion in FY16: Trade Body
New Delhi: As India’s exports fell for the 14th month in a row, exporters said the country may end up with outbound shipments of $260 billion in 2015-16, sharply lower than the $310.5 billion mark achieved in the previous fiscal year.

“We may end up with exports of around $260 Billion in 2015-16,” said S C Ralhan, president of exporters’ body FIEO.

“However, looking at the exports globally, we are no exception as even leading exports nations have witnessed more or less the similar trend,” he added.

Exports fell 13.6 per cent in January to $21 billion due to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand.

“The fall in engineering exports by over 27 per cent for January will have a negative impact on the jobs as well, since the sector is dominated by SMEs with large number of employment,” said T S Bhasin, chairman of engineering exporters’ body EEPC India.

Imports too shrank 11 per cent to $28.71 billion last month, leaving a trade deficit of $7.63 billion as against $7.87 billion in the same month last year. It is the lowest deficit in 11 months.

In February last year, it was at $6.85 billion.

Mr Ralhan said problems like transfer of shipping bill, verification of MEIS, delay in release of duty drawback and interest subsidy have seriously affected the liquidity of exporters and government should ensure that the benefits announced through policy measures reach them.

[“source-ndtv”]