The decline in exports of textiles, leather and engineering goods is major concern as these are high-employment intensive sectors of exports, S C Ralhan, president, Federation of Indian Export Organisations (FIEO), said while reacting to the trade data of July 2016.
In July 2016, India’s exports were valued at 21.689 billion US dollar (Rs 145770.39 crore) which was 6.84 per cent lower in dollar terms (1.61 per cent lower in rupee terms) than the level of 23.281 billion US dollar (Rs 148149.92 crore) during July 2015, according to RBI figures.
The decline in export reflects the contraction in global trade and leading exporting countries like China also witnessed similar decline in the month of July, 2016, Ralhan said.
“Global trade uncertainties are increasing and Brexit has further compounded the same,” he added.
The Rs 6,000 crore package recently approved for the textiles sector will take some time before its effect is visible in exports, Ralhan said.
“The new GST regulation will add to the competitiveness of exports through better rebating of taxes though many of the concerns of the export sector need to be addressed in the model GST law. The logistics cost is also likely to come down through a single market approach benefiting the export sector,” FIEO president added.