India : After 18 months, a ray of hope for India's exports

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After 18 months, a ray of hope for India's exports

17
Jun '16

The decline of Indian exports that have fallen for 18 months in a row now, has been arrested in May, says the government and that it is time to extend incentives to boost the overseas shipments.

According to Commerce and Industry Minister Nirmala Sitharaman, the decline has bottomed out although exports may be rising slowly.

"I think from now, it will show slow but steady rise...Last month's indicators show that it has now come down to 0.79 per cent, which is still a situation where we have to do a lot more to allow it to pick up.

"So it is a time when the help will have to be extended whether in the form of interest subvention or in the form of any kind of incentives for exports. We have been looking at it sectorally," she told reporters in New Delhi.

India's exports fell for the 18th month in a row in May, though marginally by 0.79 per cent, to $22.17 billion as several non-oil sectors such as engineering and gems and jewellery saw a rise in outward shipments. The decline in May was lowest since December 2014.

“I am cautious but I can see that the fall is getting arrested and pick up is slowly showing up," she said.

The Minister's statement about arresting falling exports is likely to encourage the textiles sector. India's textiles and apparel exports fell 1.46 per cent in 2015-16. The apparel sector has been pressing the government to expedite free trade agreements the with EU and two other major trade deals with Australia and Canada to boost exports. (SH)

Fibre2Fashion News Desk – India

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