Jaitley should forget Sushma and arrest decline in exports

Exports have been down for the last six months and exports demand govt intervention

GN Bureau | June 17, 2015


#arun jaitley   #sushma swaraj   #finance minister   #exports   #imports   #us   #US  

Finance minister Arun Jaitley has left for the US on Tuesday to hold multi-city economic road shows to sell India’s growth story after vigorously defending his cabinet colleague Susham Swaraj, who is at the centre of Lalit Modi controversy. Jaitley has a quite a job on his hands as India’s exports declined a steep 20.19% in May to $22.35 billion, the sixth consecutive month of contraction.

His work is cut out as the US is the largest market for Indian exports while it ranks sixth in terms of FDI between FY01 and FY15. In FY15, India had a trade surplus of $20.5 billion with the US while FDI from there stood at $1.82 billion.

The exports have been on the downslide for the last six months due to a softening of crude oil, metal and other commodity prices, besides weak demand in major overseas markets such as China, the Opec and euro zone, a relatively stronger rupee and domestic bottlenecks.

On imports front, the underlying weakness in the domestic manufacturing sector and tepid domestic demand has resulted in imports declining by 16.52% in May, a 15-month low (the lowest since 17% contraction in February 2013). It was for the sixth consecutive month that imports remained in the negative territory.

This means a trade deficit of $10.4 billion, the third consecutive month it remained above the $10-billion mark, marginally down from $11.79 billion in March (which was the highest since November 2014) and $11 billion in April.

Meanwhile, the Federation of Indian Export Organisations (FIEO) on Tuesday urged the central government to check sharp decline in merchandise exports as it expressed concern over the widening trade deficit.

"The continuous negative growth in exports since December 2014 is a serious concern for all stakeholders, as the decline has exasperated to 20 percent till date this month," FIEO president SC Ralhan said in a statement.

He said emerging economies particularly of Asia are contracting due to slowing down of China, adding that Indian exporters are losing out their competitiveness due to high logistics cost and ground level transaction costs.

On the hand, industry body Assocham said given the current trend, exports touching even the $300 billion mark this fiscal would be a tall order. Exports had missed the target of $340 billion last fiscal and could touch only $310.5 billion.

"Decline in exports of engineering goods, gems and jewellery, organic and inorganic chemicals, drugs and pharmaceuticals, leather and leather products, electronic goods and plastics and linoleum are of equal concern as these sectors have either shown further dip or have moved into negative territory," Ralhan said.

Adding to the woes, the services sector had also declined in exports and imports by 5 percent and 20 percent in April of 2014-15 compared to the like period in 2013-14.

Comments

 

Other News

NITI Aayog rolls out three year action agenda

 Even as a vision and a strategy agenda is in "advanced stages" of finalisation at NITI Aayog, the government think tank has released a draft three year action agenda for public consultation.  The draft action agenda, divided in seven parts and 24 chapters, proposes to reduce

It’s a cause of worry, says NHRC on killing of 25 CRPF troopers

The National Human Rights Commission (NHRC) on Tuesday said it was “disturbed” over the killing of 25 Central Reserve Police Force (CRPF) personnel by Naxalites in Chhattisgarh on April 24. The troopers were attacked while on duty for securing road construction work in the Bur

99% complaints filed through Twitter resolved: BSNL

 Twitter Sewa unveiled by the ministry of telecommunications last year to resolve users’ complaints through micro blogging site Twitter has yielded fruitful results by resolving 99 percent of the complaints.   According to BSNL data, as on April 15, 2017, it has receiv

People of Delhi now hate Kejriwal: Vijay Goel

What is your perception about Arvind Kejriwal’s brand of politics?   In Delhi, after the BJP and the Congress, people wanted to give the Aam Aadmi Party a chance. However, after the Delhi assembly polls, his (Kejriwal`s) political fortune has been on the declin

BHEL’s biggest foreign power project takes off in Bangladesh

Bharat Heavy Electricals Limited’s biggest export order, valued at Rs 10,000 crore for setting up 1,320 MW Maitree thermal power project in Bangladesh has taken-off following the issuance of the ‘notice to proceed’ by the developer.   BHEL said that it won a

For a free and open access

Mozilla is working on two separate goals in net neutrality. One is to bring everyone online; ensure that everyone has access to the internet. The other is to ensure that the network should remain open and diverse. We want people to have access to the whole diversity of the internet and not just in



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter