New Delhi: With India's outbound shipments contracting for the eighth month in a row, exporters on Friday expressed concern over the continuous slide, saying government needs to immediately step in and chalk out a strategy to give them a competitive edge.
"Continuous fall in exports is a matter of great concern and the troubles may even increase in the coming months since the global demand remains quite subdued, with the exception of the US markets," engineering exporters' body EEPC India Chairman Anupam Shah said.
"The government needs to immediately step in and chalk out a strategy for giving a competitive edge to the Indian exporters," he added.
Contracting for the eighth month in a row, India's exports were down 10.3 percent in July to USD 23.13 billion, hit by global slowdown and dip in crude oil prices which impacted the value of petroleum products.
In July 2014, the merchandise exports had amounted to USD 25.79 billion. The last time exports registered a positive growth was in November, when shipments expanded at a rate of 7.27 percent.
However, exporters' body FIEO President S C Ralhan said that going by increase in container traffic in first fortnight of August, he expects outbound shipments to move northwards for the month of August and subsequent months.
Moreover, Ralhan cautioned the exporters to guard themselves against excessive volatility and hedge their currency risk rather than get swayed away by depreciation of Rupee.
"The depreciation of yuan, if happen further, may impact expected growth in exports from November," he said.
Imports, too, declined by 10.28 percent to USD 35.94 billion in July this year due to fall in oil imports, leaving an 8-month high trade deficit of USD 12.81 billion, according to the data released by the Commerce Ministry.
Compared to July last year, when it was USD 14.27 billion, the deficit has narrowed.
