New Delhi: Export growth of top sectors including engineering, petroleum products, and gems and jewellery entered into the negative zone in July.
According to experts, both domestic and global economic conditions are responsible for the decline in the outbound shipments.
In July, exports of engineering, petroleum products, and gems and jewellery contracted by 1.69 per cent, 5 per cent and 6.82 per cent, respectively.
A decline in exports in these sectors has a bearing on the growth of the country’s overall exports, which grew by a meagre 2.25 per cent in July.
Major economic indicators including the index of industrial production (an indicator of manufacturing growth), growth of eight core sectors, and car sales are all recording dwindling growth rates.
On the other hand, tariff war between the world’s top traders – the US and China – too are responsible for demand slowdown in world markets.
Dip in exports have implications n job creation and overall economic growth as exports account for about 15 per cent.