NEW DELHI: The country’s merchandise exports turned positive for the first time in 19 months in June, breaking away from the downward trend. According to Commerce Ministry data released on Friday, exports grew 1.27 percent in June to $22.6 billion while imports continued to contract for the 19th month in a row, down 7.3 percent to $30.7 billion, generating a six-month-high trade deficit of $8.1 billion.
Exports had last recorded growth in November, 2014 rising 7.27 percent year-on-year. Besides a global slowdown, the severe fall is attributed to global factors like a decline in commodity prices and sluggishness in the Chinese economy, among others. As compared to this, during the 2008-09 global financial meltdown, the decline was for nine months in a row.
S C Ralhan, president, Federation of Indian Export Organisations (FIEO) said that the positive figure has instilled optimism among exporters though the global scenario remains challenging. Positive exports by engineering, marine, drugs and pharma, plantation commodities, electronic goods, carpets and handicrafts sectors is very encouraging as these are high employment generating sectors as well, he added.
The Brexit referendum and the consequent depreciation of British Pound has put Indian exporters in a difficult situation particularly smaller ones who have not hedged their currencies.“Decline in gems and jewellery and apparel exports, though marginal is a cause for concern. However, firming of gold prices and new packages for the textile and apparel sector will lead to better results,” said Ralhan.
