Saturday (December 28): Though the continuous contraction in India’s exports is likely to stop next year, the rate of growth will be subdued on account of the uncertain global trade situation due to rising protectionism.
Commerce Secretary Anup Wadhawan said the current slowdown in exports is mainly due to a decline in petroleum products, which constitute 13.42 per cent of overall outward shipments.
This decline, he said, is mainly on account of fall in petroleum prices which has driven the export value downwards.
However, “the positive growth in the exports of non-conventional commodity groups like electronic goods, drugs, and pharmaceuticals, organic and inorganic chemicals, augurs well for future growth,” he told.
India’s export growth is in the negative zone since August 2019 due to a steep fall in shipments of key sectors like petroleum, engineering and gems and jewellery.
Labour-intensive sectors such as carpets, ready-made garments, handloom and leather too are recording decline in export growth.
As per the World Trade Organization (WTO), global merchandise trade volumes are expected to rise by only 1.2 per cent in 2019, substantially slower than the 2.6 per cent growth forecast in April 2019.
However in 2020, the growth in trade volume is projected to accelerate to 2.7 per cent.
Apex exporters body Federation of Indian Export Organisations (FIEO) said the global situation is becoming extremely challenging as rising protectionism is leading to uncertainty.
