NEW DELHI: India’s exports shrank for the first time in nine months in
June as global trade tension hit shipments and the Country braced for
the impact of the US withdrawing some benefits.
Exports shrank 9.71% last month to $25.01 billion while imports declined 9.06%. The trade deficit narrowed to $15.28 billion from $16.6 billion a year ago, data released by the Government showed.
Exports to China fell by a sharp 14.1% as the Country struggled with the impact of the trade war with the US — its GDP growth slowed to a 27-year low of 6.2% in the June quarter. India’s shipments to the United Arab Emirates fell 15.31% and those to Hong Kong dropped 9.68% in June.
“The decline in exports in June is due in large part to a base effect of an extraordinarily good month in June 2018,” said Commerce Secretary Anup Wadhawan, adding that the decline was also consistent with certain global trends, which have impacted exports in recent months.
The decline in crude prices also weighed on petroleum exports. The last time exports contracted was in September 2018, when they fell 2.15%. Data showed a decline in shipments for 21 out of 30 sectors with the steepest fall registered in gems and jewellery, engineering goods and petroleum products in June. Healthy exports are key to the Government’s plan to revive the economy. “The temporary shutdown of ONGC Mangalore Petrochemical Ltd for maintenance has adversely impacted exports of petroleum products,” the Commerce Ministry said in a statement. “Jamnagar refinery also experienced a routine maintenance related disruption in June 2019.”
In a report last month, rating agency Crisil said that the withdrawal of GSP will affect exporters of gems and jewellery the most with around 15% of these having availed of the benefits in 2018.
“Now there will be an additional duty of 7% on exports of precious metal-based and imitation jewellery,” the rating agency had said. “That will reduce competitiveness of domestic exporters and put pressure on margins.”
Exports shrank 9.71% last month to $25.01 billion while imports declined 9.06%. The trade deficit narrowed to $15.28 billion from $16.6 billion a year ago, data released by the Government showed.
Exports to China fell by a sharp 14.1% as the Country struggled with the impact of the trade war with the US — its GDP growth slowed to a 27-year low of 6.2% in the June quarter. India’s shipments to the United Arab Emirates fell 15.31% and those to Hong Kong dropped 9.68% in June.
“The decline in exports in June is due in large part to a base effect of an extraordinarily good month in June 2018,” said Commerce Secretary Anup Wadhawan, adding that the decline was also consistent with certain global trends, which have impacted exports in recent months.
The decline in crude prices also weighed on petroleum exports. The last time exports contracted was in September 2018, when they fell 2.15%. Data showed a decline in shipments for 21 out of 30 sectors with the steepest fall registered in gems and jewellery, engineering goods and petroleum products in June. Healthy exports are key to the Government’s plan to revive the economy. “The temporary shutdown of ONGC Mangalore Petrochemical Ltd for maintenance has adversely impacted exports of petroleum products,” the Commerce Ministry said in a statement. “Jamnagar refinery also experienced a routine maintenance related disruption in June 2019.”
In a report last month, rating agency Crisil said that the withdrawal of GSP will affect exporters of gems and jewellery the most with around 15% of these having availed of the benefits in 2018.
“Now there will be an additional duty of 7% on exports of precious metal-based and imitation jewellery,” the rating agency had said. “That will reduce competitiveness of domestic exporters and put pressure on margins.”
No comments:
Post a Comment