For 11 months in a row, commodity exports from India have been showing a declining trend. The sharp decline in the export of oil products, which contributed the most towards export revenues in the past, has been the main reason.
Here are the top five sectors that pulled down the country's export revenues in October 2015:
1. Petroleum Products
India's export of Rs 16,004 crore worth of petroleum products in October 2015 was 54.47 per cent less than the Rs 35,148 crore it earned from export of similar products in October 2014. The reason for the decline in the value of petroleum products is simple. Raw material has become cheaper.
2. Engineering Goods
The exports in this sector declined by 6.3 per cent to Rs 29,780 crore in October 2015 from Rs 31,784 crore in October 2014. Considering that a quarter of our engineering goods are targeting the Chinese market, a slump in demand from China triggered the decline.
3. Gems & Jewellery
A 76.56 per cent decline from Rs 24,530 crore to Rs 22, 676 crore in October 2015 had a negative impact on overall export growth figures of the country. Economic slowdown in Europe is one of the reasons for less demand for precious metal products.
The value of rice exports in October 2015 was Rs 2,595 crore, 37 per cent lower than Rs 4,124 during October 2014. Softening of global rice prices - other major rice exporting nations such as Vietnam and Thailand also experienced the same - was the major culprit.
5. Iron Ore
It might be negligible in terms of export value, but iron ore exports fell 84 per cent to Rs 19.18 crore in October 2015 from Rs 125.08 crore during the corresponding month the previous year. Slump in demand could be a reason today, but the decline in India's iron ore exports should mostly be linked to the country's domestic legal, policy and regulatory developments.
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