Exports dip due to global gloom, fall in manufacturing: Fieo.

Mumbai: The 4.16 percent fall in exports for May is due to slowdown in consumers of Indian goods globally and a fall in domestic manufacturing, the Federation of Indian Exporters Organisations (FIEO) has said.

"The decline in exports is on account of global trade slowdown and deceleration in domestic manufacturing," Fieo president M Rafeeque Ahmed said in a statement Monday.

Earlier in the day, commerce and industry ministry data said exports declined by 4.16 percent year-on-year in May to USD 25.68 billion against USD 26.79 billion in the year ago period. In April too, shipments contracted by over 5.2 percent.

Ahmed said many countries across the world are facing similar problems and exuded confidence that there will be a pick up in exports in the second half of the fiscal.

The increase in exports during the second fiscal will help in ensuring that the country meets the targeted 15-20 percent rise in outbound shipments, which have to touch USD 350 billion by FY13.

Exporters should explore new markets, find new buyers in the existing markets and take full advantage of fall in the rupee, Ahmed suggested.

There is also a need for the exporters to increase their productivity through efficiency and cost cutting measures, he added.

Source : zeenews.india.com