However, similar decline in imports which too was on a low base has helped us in reducing the trade deficit further but its effect on country’s manufacturing needs to be assessed through sectoral analysis of imports. The sharp decline in gold imports (from 85% increase in Jan, 2016 to a decline of -29% now) has helped in reducing the trade deficit.
FIEO Chief said that the data for the month of February 2016 is much encouraging as compared to previous month’s exports as 14 sectors out of 30 are showing positive growth as against 13 sectors in January, 2016. Some of the sectors which were in red last month like fruits & vegetables, meat, dairy and poultry products, organic & inorganic products, and chemicals have turned out to be positive while sharp decline in sectors such as engineering goods & readymade garments has been largely arrested. Gems & Jewellery sector, pharmaceuticals, spices, tobacco, cereals, electronic products are continuing to post positive results.
Ralhan said exports will continue to face challenging times in 2016 and improvement is expected from the last quarter of 2016.