Decline in exports "pulled down" GDP growth by 3%: FIEO

Exporters body FIEO today said the decline in outbound shipments has "pulled down" India's GDP growth in the April-June quarter by over 3 per cent.
India's economy recorded 7 per cent growth in the first quarter of the current fiscal. According to FIEO President S C Ralhan, "had the exports showed even modest growth, the GDP number for last quarter would have touched 10 per cent."
"Decline in merchandise exports by 16.75 per cent (contributing to about 15 per cent of GDP) and service exports by 7.0 per cent (with a share of about 7.5 per cent in GDP) had pulled down the GDP growth by over 3 per cent," Ralhan said in a statement here.

The FIEO President said that achieving 8 per cent growth in 2015-16 would be possible only if exports show an overall growth of at least 10 per cent during the current fiscal, which at the moment looks challenging as first four months have produced negative results.
He said interest subvention for exports should be introduced immediately and transition problems relating to schemes under new Foreign Trade Policy must be addressed expeditiously.
"While the base effect will help address exports decline in coming months, the volatility in Rupee will keep exporters on their toes, though order booking position has improved marginally," Ralhan said.