Rising Exports amidst Low Commodity Prices
June 6, 2016
Indian merchandise exports recorded a downfall for the second consecutive year in 2015-16. But as per a Directorate General of Foreign Trade (DGFT) report, the volumes of exports of major commodities including chemicals, inorganic and organic chemicals, dyes, paints, varnishes and allied products have recorded an increase in terms of volumes.
The conclusions of the DGFT report based on 168 principal commodities excluding petroleum and bullion products suggest that the fall in exports was not entirely driven by the fall of global demand. It was, in part on account of fall in global commodity prices in 2015-16. Global commodity prices had recorded a downfall of 28% in 2015-16 over the previous year following the downward trajectory in crude oil prices.
Other commodities which have recorded increases in volume of exports are agrochemicals and plastic raw materials.