'Cheap goods main reason for export plunge'

India’s merchandise exports have fallen by 16.1 per cent in US dollar terms, over the 12 months ended November 2015.

However, the contraction in the exports (in US dollar terms) is not reflective of the actual weakness in volumes, but mainly driven by the fall in global commodity prices, and the sharp weakening of the euro (averaged 16.6 per cent lower Y-o-Y), according to India Ratings and Research (Ind-Ra).

About three-fourths of the decline is on account of a dip in crude oil exports, and its products and agri-commodities, in line with the fall in the prices of these commodities.

A sharp decline in commodity prices has depressed the prices of many intermediate and manufactured goods, leading to a decline in the value of exported items.