Exports may end up at USD 260 billion in FY16: FIEO

As exports fell for the 14th month in a row, exporters said the country may end up with outbound shipments of USD 260 billion in 2015-16, sharply lower than the USD 310.5 billion mark achieved in the previous fiscal.

"We may end up with exports of around USD 260 Billion in 2015-16," exporters' body FIEO President S C Ralhan said.

"However, looking at the exports globally, we are no exception as even leading exports nations have witnessed more or less the similar trend," he added.

Exports went down by 13.6 percent in January to USD 21 billion due to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand.

"The fall in engineering exports by over 27 per cent for January will have a negative impact on the jobs as well, since the sector is dominated by SMEs with large number of employment," engineering exporters' body EEPC India Chairman T S Bhasin said.

Imports too shrank 11 per cent to USD 28.71 billion last month, leaving a trade deficit of USD 7.63 billion as against USD 7.87 billion in the same month last year. It is the lowest deficit in 11 months.

In February last year, it was USD 6.85 billion.

Ralhan said problems like transfer of shipping bill, verification of MEIS, delay in release of duty drawback and interest subsidy have seriously affected the liquidity of exporters and government should ensure that the benefits announced through policy measures reach them.