Exports of top five sectors – engineering, petroleum, gems and jewelery, textiles and pharmaceuticals – fell by about 25 per cent to USD 13.33 billion in August due to global demand slowdown.
These five sectors accounted for about 65 per cent of the country’s total merchandise exports in 2014-15.
In August last year, exports of these sectors stood at USD 17.79 billion.
While engineering, petroleum and textiles recorded negative growth, gems and jewelery and pharmaceuticals registered a marginal growth of 2.66 per cent and 6 per cent, respectively during the month under review, according to the provision data of the Commerce Ministry.
In 2014-15, exports of these segments stood at USD 202.15 billion. The country’s total exports were aggregated at USD 310.5 billion in the last financial year.
Federation of Indian Export Organisations (FIEO) said these are labour intensive sectors and government should announce steps to contain the dip in outbound shipments.
Decline in exports has been instrumental in dragging down India’s overall merchandise exports.
Worried about continued decline in exports, the Commerce Ministry has called a meeting of exporters on October 7 to discuss ways to contain fall in the outbound shipments.
India has aimed at taking exports of goods and services to USD 900 billion by 2020 and raising the country’s share in world exports to 3.5 per cent from 2 per cent.
The total exports in the past four financial years have been hovering at around USD 300 billion.
The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit.