Exports down 10 pc in July; FIEO hopes improvement

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Saurabh Gupta | 17 Aug, 2015
Reacting to the trade data for the month of July exhibiting 10.3 percent decline, the apex exporters body Federation of Indian Export Organisations (FIEO) has expressed its hope that the export results will be better in coming months.

"Lowering of decline in July itself is a good sign and going by increase in container traffic in first fortnight of August, he expects these results to move northwards for the month of August and subsequent months," said S C Ralhan, President, Federation of Indian Export Organisations (FIEO).

The improvement in manufacturing for the month of June from 2.9 percent in 2014 to 4.6 percent in 2015 will also support exports in coming months as there is a lead time between manufacturing growth and exports. US also posted 2.7% GDP growth in second quarter with very low unemployment numbers which is good sign for global economy.

According to official data, the exports during July, 2015 were valued at USD 23.13 billion, which was 10.30 percent lower than the level of USD 25.79 billion during July, 2014.

Cumulative value of exports for the period April-July 2015-16 was USD 89.82 billion as against USD 105.72 billion registering a negative growth of 15.04 percent over the same period last year.
Imports during July, 2015 were valued at USD 35.94 billion which was 10.28 percent lower over the level of imports valued at USD 40.06 billion in July, 2014.

Cumulative value of imports for the period April-July 2015-16 was USD 134.86 billion as against USD 153.27 billion registering a negative growth of 12.01 percent over the same period last year.

The trade deficit for April-July, 2015-16 was estimated at USD 45.03 billion which was lower than the deficit of USD 47.54 billion during April-July, 2014-15, said official data.

President FIEO said that improved performance of Gems & Jewellery, Phrama, Apparels, Plastics and Engineering sector is very encouraging but he is concerned with decline in most of agricultural commodities, fruits and vegetables, marine and leather as these are high employment intensive sectors.

Ralhan cautioned the exporters to guard themselves against excessive volatility and hedge their currency risk rather than swayed away by depreciation of Rupee.

The depreciation of Yuan, if happen further, may impact expected growth in exports from November, 2015 observed FIEO Chief.