17 out of 30 sectors in negative zone in March in terms of exports

Exports of over half of the 30 sectors closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand.

17 out of 30 sectors in negative zone in March in terms of exports

New Delhi: Exports of over half of the 30 sectors closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand.

Outbound shipments of as many as 17 key sectors, including petroleum products, textiles, man-made yarn and fabrics, engineering and leather dipped during the month under review, according to the ministry data.

Exporters' body Federation of Indian Export Organisations (FIEO) expressed serious concerns over the trade data and asked the government to take immediate steps to contain this persistent dip.

"Almost all the major sectors have either shown a negative growth or a declining trend during the last three months. These sectors together accounts for well over two third of exports," FIEO President S C Ralhan said.

Falling for a 16th straight month in a row, exports dipped 5.47 percent to USD 22.71 billion in March.

The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit.

"Order book position of exporters are not good. Going by this trend, job losses may start," Ralhan said.

During the month, top two sectors -- engineering and petroleum products -- contracted 11.29 percent and 21.43 percent, respectively. Gems and Jewellery exports grew by a mere 4.61 percent.

As the labour-intensive jewellery sector has huge potential, the Commerce Ministry is planning to extend some incentives for them.

These three sectors make up about 55 per cent of the country's total exports.

Agri-products, which constitute over 10 per cent of the country's total shipments, too recorded a negative growth during the month under review.

Overall, nine out of 13 main agriculture products slipped into negative territory.

Exports of rice, cashew and oil meals fell 27.67 percent, 17 percent and 72.3 percent, respectively.

Other products that have reported a negative growth include cereals, oil seeds and marine products.

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