(MENAFN- KNN India) The stubborn declining trend of exports continued for the 16th straight month in March contracting by 5.47 per cent to USD 22.71 billion.
For whole 2015-16 financial year ended March 31, exports declined by 15.8 percent to five-year low of USD 261.13 billion.
The levels of exports and imports are the lowest since 2010-11. Exports and imports were at USD 245.86 billion and USD 350.69 billion, respectively, in 2010-11. Trade deficit was at USD 2.63 billion in December 2010.
Also, India's services trade surplus narrowed 20.5% to US$ 5.14 billion in February 2016
As per the data released by the Reserve Bank of India, India's services exports declined 12.6% to US$ 12.33 billion in February 2016 over February 2015. Meanwhile, India's services imports also fell 9.0% to US$ 7.19 billion in February 2016.
Earlier this month, Commerce Ministry held a Board of Trade, the top advisory body on trade, meeting to discuss about the declining exports.
During the meeting Commerce & Industry Minister Nirmala Sitharaman had said, "The micro, small and medium enterprises (MSME) sector is the top priority for her ministry."
"MSMEs are getting a lot of priority. Some of the benefits which have been given to exporters across the board are inclusive of MSMEs," she added.
Meanwhile, KNN spoke to MSME exporters who feel that apart from the global slowdown, various other factors like lack of trade agreements is hampering India's exports.
The textile exporters have been seeking review of India's trade agreements like the Free Trade Agreements (FTAs) and Preferential trade Agreements (PTAs) to check decline.
Experts opine that India has signed many trade pacts, more for geo-political reasons rather than commercial reasons.
KNN spoke to MD of Neetee Clothing, Animesh Saxena, who said that although the teaxtile and garment exporters did not suffer as much as the other sectors in the past few months, still there is a "policy paralysis" from the government side.
"Our internal costs are very high. Also, the trade agreements are against us. Bangladesh and other countries have free access to European market but our materials are 10-12% costlier than theirs," Saxena said.
He said that Vietnam is India's competitor now. "India should finalize its stuck treaties. The government should also bring down the internal transaction costs and port charges to make Indian exporters competitive," he said.
Economist Bharat Bhushan had told KNN that mere implementation of the stalled ideas can also push exports to a large extend.
Bhushan said the main reasons for declining exports are internal factor like red tapism, non-functioning of the Parliament, stalled Bills etc due to which the results are not coming.
"If the bills like Land Bill, GST and more are passed, there will be a positive impact of India across the world. Industrialization will definitely increase and the results would be eminent in one year itself," Bhushan said.
He said that 'Make in India' is praised across the world, it only the non-implementation of good ideas which is acting as a barrier.
"Indian products are very good and competitive. Red tapism and inspector raj kinds of things are responsible for high cost of production for MSME. If that improves, exports would improve too," he added.
Reacting to the falling exports, FIEO chief SC Ralhan expressed his serious concern over the declining trend in exports from December 2014 onward. Further showing concern on the data, FIEO Chief indicated that Indian exporters need immediate attention.
During the BOT meet, Sitharaman also said that the government is in talks with the EU over FTA.
Sitharaman said that the FTA once signed would give a greater access to the Indian exporters in the EU market.
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