Export orders down 35 pct

By: |
New Delhi | Published: May 6, 2015 1:35:24 AM

Exports in March had shrunk by 21.06%, a 67-month low, mainly due to a 60% fall in petroleum exports.

With Europe being a traditional market for Indian exports (accounting for over a fifth of India’s total exports), exporters have sought a “euro-specific package” from the government to tide over the crisis.With Europe being a traditional market for Indian exports (accounting for over a fifth of India’s total exports), exporters have sought a “euro-specific package” from the government to tide over the crisis.

Even as India’s merchandise exports have contracted in value terms since December 2014, a survey by the apex exporter body has clearly indicated that shipments would decline in volume terms as well in the coming months, reports Arun S in New Delhi.

Up to 75% of the 410 exporting companies from across sectors that took part in the Federation of Indian Export Organisations (FIEO) study showed orders from importers in hand in April 2015 was less than that in the same month a year earlier. The decline was in the range of 18-80%, or around 35% on average.

The survey, submitted last week to the commerce ministry, also showed that only 17% of respondents saw a rise in their order booking position in April from a year ago, while over 8% said there was no significant change in the position.

“Normally, exporting firms do not retrench skilled workers even if there is a temporary fall in order bookings. But if the trend continues for the next six months, it will lead to shedding of the workforce,” FIEO president SC Ralhan said.

order-book

The factors impacting Indian exports include rupee appreciation against the euro and yen as well as weakening of demand in Latin America, West Asia, Russia, CIS, parts of Africa (South Africa and Nigeria) as well as Indonesia and Malaysia (due to a fall in oil /commodity /metal prices), according to Ajay Sahai, director general and CEO at FIEO.

With Europe being a traditional market for Indian exports (accounting for over a fifth of India’s total exports), exporters have sought a “euro-specific package” from the government to tide over the crisis.

Exports in March had shrunk by 21.06%, a 67-month low, mainly due to a 60% fall in petroleum exports (which comprise nearly a fifth of the total exports) and weak demand overseas. Barring textiles, most major items including engineering goods, gems and jewellery, chemicals and pharmaceuticals contracted in March.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Farmers liberated today, claims Modi govt; ‘One Nation, One Market’, other agri reforms announced
2US decision to probe digital tax should not be treated as aggression against India: Sources
3Cabinet briefing: Govt amends essential commodities act, wants farmers to benefit from one country one market