India’s Top PSUs 2019

42 Export Performance India’s merchandise exports growth in FY18 remained muted at 5.8% y-o-y (in Rupee terms) in FY18 as against 7.8% in FY17. Growth in exports was largely driven by strong growth in exports reported by sectors like chemicals & related products, base metals like iron & steel, aluminium & copper as well as petroleum, crude & products. On the other hand, sectors like gems & jewellery, textiles and transport equipment reported significant decline in exports, thereby pulling down growth in overall exports. The teething problems of GST implementation such as delay in GST refunds adversely impacted merchandise exports growth in FY18. India’s services export registered strong growth of 9.1% y-o-y (in Rupee terms, BOP basis) in FY18, partly due to low base of the previous year (0.6% in FY17). Besides, growth in maintenance & repairs services and travel services exports pushed overall growth in services exports. Nonetheless, substantial decline in transports, construction as well as financial services exports capped growth in services exports. Exports of PSUs reported a slight decline In Case of PSUs, the exports reported a decline of 1.7% y-o-y to ` 800.6 bn in FY18. Among sectors, PSUs from petroleum (refinery & marketing), crude oil and other minerals & metals were the top three contributors in terms of exports, accounting for a share of 60%, 13.8% and 6.4% respectively. In case of services, except hotel & tourist services PSUs, all other service sector PSUs i.e. PSUs from trading & marketing services, transport & logistic services and contract & construction & technology consultancy services, reported substantial decline in export earnings. Sector-wise share in total exports of PSUs (in percentage) – some key sectors FY18 FY17 Petroleum (refinery & marketing) 60.0 43.2 Crude oil 13.8 12.7 Other minerals & metals 6.4 4.5 Chemicals & Pharmaceuticals 5.9 4.6 Steel 5.0 3.4 Transport & logistic services 4.7 24.9 Source: Public Enterprises Survey 2017-18, Department of Public Enterprises