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Sharp spike in raw material shipments from India

According to trade data, drugs and pharmaceuticals, rice, iron ore and plastic products witnessed growth in the first half of 2020-21
Engineering goods, which is the largest component of the  export basket with a 27 per cent share fell 15 per cent in the first half of the current fiscal.
Engineering goods, which is the largest component of the export basket with a 27 per cent share fell 15 per cent in the first half of the current fiscal.
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R. Suryamurthy   |   New Delhi   |   Published 20.10.20, 01:09 AM

The sharp spike in raw material shipments from India compared with manufactured goods in the first half of the current fiscal has raised the eyebrows of the government, prompting the commerce ministry to study the data and take requisite measures, if needed.

According to trade data, of the 12 major commodities that account for 80 per cent of the country’s exports, only four commodities — drugs and pharmaceuticals, rice, iron ore and plastic products —  witnessed growth in the first half of 2020-21 over the corresponding period last year.

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These four commodities have a 17 per cent share in total exports. Exports contracted 3-55 per cent for the other eight commodities.

Petroleum products and gems and jewellery witnessed the sharpest decline at 43 per cent and 55 per cent, respectively. Engineering goods, which is the largest component of the  export basket with a 27 per cent share, fell 15 per cent in the first half of the current fiscal.

Commerce ministry sources said,“The data needs to be studied to see if it was a one-off issue or there is a pattern that needs to be reversed. If the pattern continues, it is a worrying thing as value addition of raw material increases manufacturing output, results in job creation and better returns to the product.”

The country is keen to increase the share of manufacturing in GDP to 25 per cent from 14 per cent.



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