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

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Manfred Mentges
Sedo Treepoint GmbH

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

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.6%
No
13.4%
Skip
9.0%

Total Votes: 67

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.2%
No
28.4%
Skip
10.4%

Total Votes: 67

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.1%
No
10.4%
Skip
4.5%

Total Votes: 67

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.6%
No
11.9%
Skip
13.4%

Total Votes: 67


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