A decline in exports, as witnessed in February for first time in eight months, is expected to continue for more time as the European Union has withdrawn preferential treatment to EXPORTS from India, according to a report by State Bank Research.
"Decline in exports may continue," SBI said benefits under the EU's generalised scheme of preferences, designed to support exports from developing countries, will not be applicable to India now, hampering shipments from the country.As a result of this, the exports of mineral products, textiles, motor vehicles, bicycles and chemicals are expected to suffer as they will no longer enjoy any preferential treatment, it said.
The SBI report said India will end the ongoing fiscal year with a current account deficit of 434 billion, or 1.8 per cent of GDP, but sounded concerned on the gold import front."Although gold imports from official channels have declined, the vast inelastic demand for gold further fuelled by high domestic prices, has now been made good by unofficial channels," it said.
"Decline in exports may continue," SBI said benefits under the EU's generalised scheme of preferences, designed to support exports from developing countries, will not be applicable to India now, hampering shipments from the country.As a result of this, the exports of mineral products, textiles, motor vehicles, bicycles and chemicals are expected to suffer as they will no longer enjoy any preferential treatment, it said.
The SBI report said India will end the ongoing fiscal year with a current account deficit of 434 billion, or 1.8 per cent of GDP, but sounded concerned on the gold import front."Although gold imports from official channels have declined, the vast inelastic demand for gold further fuelled by high domestic prices, has now been made good by unofficial channels," it said.