Home / Knowledge / News / Textiles / ASSOCHAM: 2015-16 to be worst year for exports in 5 years
ASSOCHAM: 2015-16 to be worst year for exports in 5 years
22
Sep '15
In a gloomy forecast, Assocham has said India's merchandise exports are going to hit the lowest in five years at the end of 2015-16 closing the current fiscal between $265-268 billion, significantly lower than $310 billion in the previous fiscal, mainly due to a sharp erosion in commodity prices in the global market and slump in their speculative demand as reflected in futures trading.

“Indian exports had achieved a landmark of $300 billion in 2011-12 for the first time making the country a sizeable player in global exports. Afterwards somehow, for one reason or the other we could reach a maximum of $314 billion in 2013-14, only to fall in the following year at $310 billion. But the fall this year is going to be very steep,” the Assocham study on “Export Outlook in the face of commodity Meltdown”, said.

However, it is not as if the entire export drop is coming around on the back of fall in demand for Indian goods. It is only that the global merchandise economy has moved away sharply from a very high cost, ultra bullish commodity situation to a bearish and low cost situation where demand relates mainly to the actual consumption which is rather low key.

“The pricing power as was being mirrored in the futures trading markets all over the world – be it for crude oil, metals, coal, copper or even edible items turned out to be rather myopic and has totally disappeared. Thus, there is no sentiment build-up around commodities and thus the demand is actually restricted to the real consumption. Nobody is willing to bet for futures and thus there is a meltdown in prices”, the Assocham study noted.

It further stated that with the erosion in price tags, the exports in value terms have dropped while in volume, the scenario is not that bad across sectors.

“Like in the world of technology, disruptive changes are also taking place in the real world of goods exports. It will take time before we adjust from the next fiscal when the low base impact would kick in,” Assocham Secretary General D S Rawat said.

Bulk of India's export basket comprises commodities, be it engineering goods (mostly iron ore /steel and other metals), petroleum products, which have been hit in value terms. For instance, for the month of August, the exports of engineering goods are down 29 per cent and petroleum products by 47.88 per cent.

However, the erosion in consumption demand, which is more disturbing is seen in leather goods, apparels, gems and jewellery. “These products are not a commodity play and reflect the slowdown in consumption and pressure on the consuming economies. For India, they mean a large scale employment”, the study noted.

Export of leather products saw a decline of close to 13 per cent while the export of readymade garments fell 7.32 per cent in August. Gems and jewellery witnessed a modest gain of 2.66 per cent on the back of changing gold prices, the study said. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search