Exports from state see downward trajectory

Exports from state see downward trajectory

Exports from state see downward trajectory

Exports from Karnataka have seen a southward trajectory during the first six months of 2017-18, according to data available with the Economic Survey for 2017-18.

While total exports from the state declined by 1.8%, the exports of non-petroleum products from the state too declined by 2.4%. The decline in the exports has been led by the electronics and computer software sector, which has long been seen as the backbone of Karnataka's economy, the Survey tabled in the legislature on Friday showed.

The share of exports in GSDP, which was 7.36% in 1993-94, has gradually grown to 30.20% in 2016-17. Karnataka's exports, which were pegged at Rs 5.49 lakh crore in 2016-17, constituted 18.78% of the country's total exports that year.

At a time when the IT services sector has been gripped by global headwinds and a slowdown, the software exports from the state for first six months declined by Rs Rs 5,587.85 crore to touch Rs 1,96,895 crore as compared to Rs 2,02,483 in H1 of 2016-17.

This is despite the fact that the services sector is expected to grow by 10.4% in 2017-18, as against a growth of 8.9% during 2016-17. During the last few years, the services sector has been the largest contributor to GSDP. The share of services sector went up marginally from 65.53% in 2016-17 to 66.63% in 2017-18.

However, during the year 2016-17, the software exports from the state were pegged at Rs 4.19 lakh crore constituting 39% of the total exports from the state. The exports of spices from the state declined by 5.1% in the first six months, to Rs 190.79 crore from Rs 201 crore.

However, the saving grace came from the petroleum industry, which saw its exports doubling in the period under consideration. Aided by enhanced production of petroleum products by the Mangalore Refinery and Petrochemicals, the petroleum products' exports from the state have almost doubled in the current year. The exports of petroleum products jumped to Rs 4,224.75 crore between April and September of the current financial year, as against Rs 2,844 crore in the corresponding period last year.

Experts suggest that there can be a stress on the current account balance arising out of this.