JOIN US India’s merchandise exports are set to fall 13 per cent to around $270 billion in the fiscal ending March, a senior commerce ministry official said on Thursday.
India’s merchandise exports had aggregated $310.5 billion last fiscal.
The major cause for drop in exports has been global slowdown and the crash in commodity prices. The demand for Indian goods has been slow in the traditional market of US, Europe and Japan, which are growing very slowly. The devaluation of Chinese currency too has hurt India’s export prospects.
Commerce Secretary Rita Teaotia in her presentation during an interaction with the industry chambers has stated that it will be difficult for India’s exports to exceed $270 billion. Her confession comes on the back of the government recently issuing a statement that there was no need for alarm on the export front and that the export sector was not facing any crisis.
It had said that if the exports of petroleum products were excluded then the fall in India’s outbound shipment was very marginal. This year’s exports number will have a bearing on India’s long term target too. Prime Minister Narendra Modi-led government aims at increasing India’s exports to $900 billion from the current $300 billion by 2020. It has also given major incentives to the export sector in the recent months.
India’s premier export body FIEO has urged the government for the immediate announcement of revision in Duty Drawback rate for engineering sector looking into the duty revision on certain major inputs, including the safeguard duty.
FIEO President S C Ralhan has also urged that immediate refund of taxes and duties such as excise, CENVAT, Drawback, Service tax and VAT are required to further give a boost to exports.