Out of the 30 exporting sectors, 23 were in the negative zone in August 2015, according to data from India’s Ministry of Commerce.

India’s exports dropped 20.66% in August to US$21.26 billion, increasing the trade deficit to US$12.47 billion. Industry representatives have urged for government intervention. S C Ralhan, President of the Federation of Indian Export Organisations, said this is “a challenging time in which reaching last year’s export figure looks difficult” and has called for a meeting with all parties concerned.

The leather segment reported 12.78% negative growth during August. Other sectors concerned are engineering (-29%), and petroleum products (47.88%). Textiles exports declined 7.32% to US$1.28 billion in August alone.

Agri-products, which represent over 10% of the country’s total exports, also recorded a negative growth for the same month.

As reported by ILM on August 18, India’s Ministry of Commerce was considering providing a subsidy to the leather industry as part of a measure to halt a continuous fall in exports. However, it has now asked industry representatives to explore new markets and value-added products.

The Indian government has aimed at increasing exports of goods and services to US$900 billion by 2020 and raising the country’s share in world exports from 2% to 3.5%. Total exports in the past four financial years have represented around US$300 billion.

According to local media, the continuous decline in exports is expected to impact jobs and put pressure on the current account deficit.

Source:  The Hindu