For Indian exports 2015 was a year of moderate growth, with around 8% growth expected as per the latest DGCI&S data. Exports to the US, the largest market, have also grown by similar rate this year. However, the concern should be on our slipping share in the global market. From being the fifth largest exporter, till 5 years back, we have steadily let countries like Bangladesh, Vietnam (and may be Turkey, by end of 2015) takeaway our share, leaving India at seventh position. A key to the problem is in the fact that the growth has been largely volume-driven, indicating a slower growth in value realisations as also a seasonal export basket. The export basket is largely summer wear and cotton dominated. Despite many pleas by industry experts, few efforts have been made to find a sustainable solution to this problem.
Another problem is the huge gap in policy support to India, vis-à-vis some of its competitors. The MoT was very proactive in 2015 in voicing its concerns and support to the industry’s woes, but few concrete steps have been taken in the needed direction to uplift the industry and put it on the path of growth. Talking to exporters on how the year gone by was and what their goals are for this year, threw up some interesting replies…
