Negative growth in some key export sectors matter of worry: Ralhan
Author(s): City Air NewsLudhiana, May 15, 2015: Commenting on the merchandise trade data for April, 2015, Mr S C Ralhan, President, FIEO said that negative growth in exports is continuing since December, 2014 though the decline has come...
cityairnews
May 15, 2015 12:30
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Ludhiana, May 15, 2015: Commenting on the merchandise trade data for April, 2015, Mr S C Ralhan, President, FIEO said that negative growth in exports is continuing since December, 2014 though the decline has come down from 21% in March, 2015 to 14% in April, 2015. The prime reason continues to be softening of crude, metal and commodity prices. Petroleum exports is still showing a decline of 46.5% which itself is responsible for an overall decline of 9%, as the sector used to contribute to 20% of country’s exports. Decline in exports of rice, marine products, meat, dairy & poultry products, leather & leather products are of equal consequences as these sectors have shown great promise in the past. Equally worrying is negative growth in Gems & Jewellery, Electronics and Plastic goods as domestic capabilities are being augmented in these sectors.
However, increase in exports of Engineering, Handicrafts, Carpets, Pharmaceuticals, Organic & Inorganic chemicals is very positive development as most of these sectors were exhibiting a decline from Jan, 2015 onwards.
Mr Ralhan said that while country-wise exports figure for April are not available, yet he feels that our exports to countries dependent on oil, metal and commodities exports may have taken a hit as they reduced their appetite for imports with tighter capital control.
President, FIEO said that while trade deficit has gone up marginally from US$ 10.08 billion to US$ 10.99 billion in April, 2015 as compared to the same month last year but a closer analysis of non-oil imports is required to see the constituent of imports as higher imports of raw-materials and capital goods may indicate little revival in manufacturing.
Mr Ralhan said that the Interest Subvention Scheme may be re-introduced immediately and liquidity crunch of the exporters may be addressed with timely release of the exports benefits.
Date:
Friday, May 15, 2015
