Exports enter negative zone in 16 sectors

review, the commerce ministry data showed.

Federation of Indian Export Organisation ( FIEO) president Ganesh Gupta said that the negative growth in September is primarily due to high base effect last year.

However, he expressed hope that the export growth would be better in the coming months as the order books are healthy.

Steps like increasing interest subsidy to five per cent from three per cent recently would give a further boost to exports, he said adding the government, however, needs to look at ensuring flow of credit.

Mr Gupta demanded for augmentation of the flow of credit to the export sector as a sharp decline in credit when exports are smooth growing at the doubledigit does not augur well for the future.

During September, important segments like engineering, readymade garments of textiles, gems and jewellery and leather exports contracted by 4.12 per cent, 33.58 per cent, 21.7 per cent and 13 per cent, respectively. These sectors contribute significantly in the country’s total outbound shipments.

Agri- products, which constitute over 10 per cent of the country’s total shipments, too recorded a negative growth during the month under review. The government is in the process of rolling out an export policy to boost shipments. Overall, eight out of 13 main agriculture products slipped into negative territory.

Exports of rice, cashew and tea fell 31.64 per cent, 29.3 per cent and 15 per cent, respectively.

However, shipments of pharmaceuticals, plastic, chemicals, and electronics have recorded positive growth in September.

During April- August 2018- 19, exports recorded a growth of 12.54 per cent. Imports in the period rose by 16.16 per cent.