Developed economies under stress, there is demand slowdown: Goyal

The developed economies are under stress, and there is a demand slowdown in the world market, Commerce and Industry Minister Piyush Goyal on Monday said amid a dip in the country's exports.

India's exports contracted by 22 per cent, the steepest decline in the last three years, to USD 32.97 billion in June on account of global demand slowdown, especially in the Western markets like the US and Europe.

"Over the last two years, we have had record exports. Unfortunately, the world seems to be moving towards a recession. Developed economies of Europe and America are under stress, very often overstocked, seen softening of commodities and commodity pricing and demand. Similarly, discretionary spending is very lukewarm," he said at an event.

The minister said that gems and jewellery, textiles, and leather goods, which are India's strength areas are currently under stress.

"In this situation, it is incumbent on all of us to work as a team and make the India story, the compulsive story of the world. The world today wants to deal with India," he added.

The minister noted that India is opening its trade doors wider and "we want to have greater international trade".

India wants to be a part of the international global supply and value chains, he said, adding India wants to open the doors of other markets for products where it has significant skills, capabilities and competitive edge.

"Therefore, a focus on free trade agreements or comprehensive economic partnerships with developed economies has been a core of the commerce (ministry's) agenda that we have," he said.

He was virtually addressing the annual general meeting of the Bombay Chamber of Commerce and Industry.

The minister also quoted a recent study which stated that India is the top choice for investors as per 85 sovereign wealth funds and 57 central banks.

Goyal said that it is time to take advantage of the edge that India has in economies of scale, demographic dividend, government-industry partnership, focus on quality and efficiency, sustainability and innovation.