The Associated Chambers of Commerce and Industry (Assocham) on Friday stated India’s merchandise exports would decline this financial year. This despite the Ministry of Commerce and Industry eyeing a rise of about 15 per cent in outbound shipments, compared with $304 billion in 2011-12.
According to a recent study by the chamber, the target of increasing exports to $500 billion by 2013-14 was unlikely to be achieved. In fact, this year, exports might not even touch last year’s levels, owing to weak demand in global markets. “If the present scenario in the global economy continues, merchandise exports for the current financial year may even decelerate to below $300 billion,” stated the Assocham study.
During 2011-12, exports had risen 21 per cent over the previous year.
As against earlier projections, the economic scenario in major markets like Europe and the US had not improved, the study added.
“This is a matter of worry. The government must work out some urgent measures to arrest the decline,” said Assocham president Rajkumar Dhoot.
While exports registered a year-on-year growth of 3.2 per cent in April, in May and June, these fell 4.1 per cent and 5.4 per cent, respectively.
This led to exports falling 1.7 per cent to $75.20 billion in the quarter ended June, against $76.50 billion in the corresponding period of 2011-12.
“The commerce ministry must convene an urgent meeting of stakeholders to figure a way out of this difficult situation. Rather than a few big industrial houses alone, let small exporters also be involved in the consultation process,” said Assocham secretary general D S Rawat.