NEW DELHI: Commerce and industry minister Suresh Prabhu on Monday noted that the Indian export sector had recorded a “good” performance in June, according to early numbers analysed by the ministry. The official export numbers for the month of June will be released on July 15.
Tweeting out his statement, Prabhu noted that “despite huge volatility in global markets, when large exporting countries are facing challenges in exports, our exports for month of June again have registered good performance as per early compilation”. The country’s merchandise exports recorded 20.18 per cent growth in May. In the last fiscal year, the country’s total merchandise exports grew by about 10 per cent to $303 billion.
While the export growth in May was substantially better than the case during the last few quarters, India’s widening trade deficit in May has raised concerns. According to analysts, if crude oil rates continue to rise, so will India’s imports with the result being a large current account deficit (CAD) and consequent macroeconomic problems.
The current weakness of the rupee might also be a boon for the Indian export sector, however, according to exporters like the Engineering Exporters Council of India (EEPC) the challenge is to keep the momentum of export growth. With the Donald Trump-led United States on the warpath and global trade war fears dominating markets, several countries including India have jiggled around with import tariffs.
Meanwhile, Prabhu also stated that the government is also involving state governments in its plans to promote overseas shipments.
Prabhu also commented on the rise in the Nikkei India Manufacturing Purchasing Managers Index (PMI). “Many steps initiated by us to increase manufacturing at all levels. Happy to see manufacturing PMI improved to 53.1 in June from 51.2 in May, led by robust domestic and external demand”. The country’s manufacturing sector activity in June grew at the strongest pace this year, as per available data.