After 18 months, India sees growth in exports

Posts 1.27% growth in June, first time since Dec. 2014

India’s exports turned positive for the first time in 18 months in June growing by 1.27 per cent. India’s exports in June 2015 came at $ 22 billion. Exports have been falling since December 2014 due to weak global demand and slide in oil prices.

In June, handicrafts export grew by 92 per cent, marine products by 43 per cent, iron ore 32 per cent, tea by 11 per cent, coffee 13 per cent and spices 16 per cent among others.

However, petroleum products export declined by 10 per cent in June.

Imports in June were at $ 30.68 billion, down 7.33 per cent from $ 33.11 billion in the year- ago month, reducing trade deficit to $ 8.11 billion.

Gold imports plunged by 38.54 per cent to $ 1.2 billion in June and sliver by 27 per cent to $ 249 million. “The increase in both headline and nonoil merchandise exports on a year on year basis in June 2016 is encouraging, notwithstanding the favourable base effect owing to the contraction recorded in June 2015,” said ICRA, senior economist Aditi Nayar

She said that chemicals, engineering and electronic goods led the year on year uptick, even as a number of sectors continued to record a contraction.

“Moreover, the double digit growth in services exports in May 2016 is a favourable trend,” she added. Federation of Indian Export Organisations, president S. C. Ralhan said that positive exports figure has instilled optimism among the exporters though global scenario remains challenging. He said that positive exports by engineering, marine, drugs and pharma, plantation commodities, electronic goods, carpets and handicrafts sectors is encouraging as these are high employment generating sectors as well.

“Decline in gems and jewellery and apparel exports, though marginal is a cause of concern. However, firming of the gold prices and the new package given to the textile and apparel sector will lead to better results in short span of time,” said Mr Ralhan.

However, he said that Brexit and consequent depreciation of British pound has put Indian exporters in a difficult situation particularly the smaller ones who have not hedged

their money.

GOOD TIMES HANDICRAFTS AND Marine products showed the highestgrowth by 92 and 43 per cent respectively.

PETROLEUM products declined by 10 per cent in June