India’s merchandise exports declined 19.7 per cent in August this year, Commerce and Industry Minister Anand Sharma has said. Exports, which have been falling since October last year owing to falling demand in the major economies, were recorded at $16 billion in August 2008.
Sharma, however, added that the pace of decline in the exports is slowing. Exports were down 28 per cent in July this year to $13.6 billion. Cumulatively, exports in the four months ended July fell 34 per cent to $49.6 billion, compared with $75.2 billion in the same period last year.
On the other sectors of industry, Sharma said: “The core sector was doing very well. Pharmaceuticals and fast moving consumer goods (FMCG) sectors have done well. There is clearly a turnaround in industrial production.”
Sharma, who was speaking in an informal meeting with reporters, also said the government would soon come out with an “appropriate and strong relief package” for the coffee plantation sector.
The trade minister also expressed his concern over the continuing protectionist measures by some countries. “Every day, there are a few steps taken in some parts of the world which can be called inward-looking and protectionist. These can only deepen the recession,” he said.
Commenting on the Doha Round of the World Trade Organization (WTO) negotiations, Sharma said that there had been substantial progress in discussions and that the chairs of negotiating groups had chalked out the plan in Geneva, though “there are still gaps to be narrowed down”.
“Whatever emerged out of the Delhi ministerial, has clearly been fed to Pittsburgh. Now, the political leaders have to take it forward,” he said.
Responding to queries on the impact of the drought on export of food grains, Sharma said the government was not considering any cap on the export of basmati rice.
