After 18 months, India sees growth in exports

New Delhi: India’s exports turned positive for the first time in 18 months in June  growing by 1.27 per cent. India’s exports in June 2015 came at $22 billion.

Exports have been falling since December 2014 due to weak global demand and slide in oil prices. In June, handicrafts export grew by 92 per cent, marine products by 43 per cent, iron ore 32 per cent, tea  by 11 per cent, coffee 13 per cent and spices 16 per cent among others.  

However, petroleum products export declined by 10 per cent in June. Imports in June were at $30.68 billion, down 7.33 per cent from $ 33.11 billion in the year-ago month, reducing trade deficit to $8.11 billion.

Gold imports plunged by 38.54 per cent to $1.2 billion in June and sliver by 27 per cent to $249 million. “The increase in both headline and non-oil merchandise exports on a year on year basis in June 2016 is encouraging, notwithstanding the favourable base effect owing to the contraction recorded in June 2015,” said ICRA, senior economist Aditi Nayar. She said that chemicals, engineering and electronic goods led the year on year uptick, even as a number of sectors continued to record a contraction.

“Moreover, the double digit growth in services exports in May 2016 is a favourable trend,” she added. Federation of Indian Export Organisations, president S. C. Ralhan said that positive exports figure has instilled optimism among the exporters though global scenario remains challenging. He said that  positive exports by engineering, marine, drugs and pharmaceutical, plantation commodities, electronic goods, carpets and handicrafts sectors is encouraging as these are high employment generating sectors as well.