Export growth will be slow but steady: Sitharaman

Growth will be driven by new markets, as traditional markets have started slowing down, says the Commerce minister

The Commerce Minister Nirmala Sitharaman on Friday said that growth in exports will not increase substantially, but it will be slow and steady. The growth drivers would be new markets, as traditional markets have started slowing down.

Speaking at the Regional Editors Conference, organised by Press Information Bureau (PIB) in Chennai, she said that in 2015-16 export was valued at $262.3 billion, lower by 15.5%.

However, from June this fall was arrested and she attributed this to key developments, which was took in September last year. These are interest subvention scheme and government provided performance based incentive schemes for merchandise and services.

Exports to the top 15 destinations, which are catered by Indian exporters, dropped. These includes, US, UAE, China, UK, Singapore, Germany, Belgium, France and others. New export markets, including Africa, Latin America and others were found and now the ministry is moving forward and taking measures, including signing of FTAs, to boost export to these new countries.

"We are looking at signing FTAs with many countries and with Eurasia (a combined continental landmass of Europe and Asia)," said Sitharaman.

It may be noted, reports stated that a joint study group has submitted its report on the feasibility of a free-trade agreement with the five-member Eurasian Economic Union (EEU) comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

India has initiated talks with EU, as UK deciding to exit the EU, a separate FTA need to signed with the country, and others for FTAs.

"Exports will grow. I wont say it will grow fast, it will grow but slow and steadily. I cannot speculate on the level (growth per centage) because the global demand is not picking up. We can only hope it will increase," said Sitharaman. She said that many FTAs are pending and the government is in discussions with various countries.

Commenting on growth in manufacturing, the initiatives which were taken under Prime Minister's Make in India programme, has started yielding results. The manufacturing growth in 2015-16 was 9.3% as against 5.5% in 2014-15, 5.6% in 2013-14 and 6% in 2012-13.

Quoting a report, she said that India is ranked as third prospective host economies for 2016-18 and as far as global competitiveness concerned the country improved by 16 positions.