"The steep fall in export shipments is mainly driven by the fall in global commodity prices and the sharp weakening of the euro (averaged 16.6 per cent lower year-on-year)," India Ratings said in a report today.
However, it added that the contraction in exports is not reflective of actual weakness in export volumes.
Merchandise exports have fallen by 16.1 per cent in US dollar terms over the 12 months ending November 2015.
According to government data, exports slumped for the 12th straight month in November, declining 24.4 per cent, as petroleum exports plunged 53.9 per cent, followed by gems and jewellery (21.52 per cent), engineering goods (28.57 per cent) and iron ore (14.04 per cent).
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"Although global demand conditions remain sluggish, export volumes may not have fallen significantly," the report said.
Demand conditions in Asia, the OPEC and Africa have been hurt by falling commodity prices, moderating domestic demand and volatile exchange rates. However, Europe and the US continue to be supportive.
The report said about three-fourths of the decline is on account of a decline in exports of oil products and agri-commodities, in line with the fall in prices of these commodities.
A sharp decline in commodity prices has depressed the prices of many intermediate and manufactured goods, leading to a decline in the value of exported items, it explained.
The report added that nominal income growth of corporates in most exporting sectors will remain depressed due to the deflationary impact of falling commodity prices.
"Also, most corporates which have exposure to Europe may be unable to increase prices to offset the decline in margins caused by the depreciation of the euro due to stiff competition from other Asian exporters," it said.
While creative advancements are seen growing with every
edition, Media Expo spotlights some forward-looking innovations and not-to-be missed product introductions which can be seen at the ongoing fair:
-Unveiling of Roland DG's next generation advanced wide format print and cut machine -TrueVIS VG-640 for the first time in India -Launch of Two new DesignJet post-script printers by HP -Launch of Jumbo and Starfire series of solvent printers under brand Pixeljet by Monotech Systems -Introduction of the i-Jet printer with latest Japanese technology equipped with Konica Minolta 512i Printheads by True Color Solution Technologies -Showcase of a competitive and high-colour range of inks like Quattro, Duos and Cobalt for various printheads by A.T. Inks -Introduction of Excel - a premium backlit fabric which is a high-end environment friendly soft drape fabric used for printing of digital images and graphics by Sandeep International -Green printing solutions by Aditya Digital Technologies Signages and Display Advertising: -First-hand demonstration of LED slim light box, crystal ultra slim light box, edge lit signage, LED blackout signage, LED magnetic lightbox, LED fabric light box, LED panel light etc. by Associated Plastics
by RD LED -Wide range of 3D logos and words which are created using state of art, automatic CNC high-tech production and processing machines by SignSutra Other Innovations Technologies on Display -Opaque white blackout and lustre banners, as well as new inkjet, eco-solvent and 3rd generation latex backlit media by TechNova -PVC free and fire retardant non-woven wall coverings by Oddy India -Engaged in solutions for different inkjet mediums, cold lamination films, vinyl sheets, desk jet mediums and display stands, Addmart will present its two major products - Olive Lite and Olive Premium for diverse usage -Having recently joined hands with TPS, Katar corporation will be displaying a channel letter bending machine and a range of innovative technologies The grand unveiling of these technologies in the presence of industry experts on the first day gave attendees the chance for a first-hand demonstration of the quality and functionality of these techniques which can be applied in marketing and branding strategies.