Exporters have managed well, says Gupta
Exports growth has been affected due to high base effect but aggregate exports lead towards US$350 billion milestone, says Ganesh Kumar Gupta, President, Federation of Indian Export Organizations (FIEO), responding to September 2018 trade data.
“Though the data shows a marginal negative growth in the month of September primarily due to high base effect last year, the aggregate value of exports in this September is much more than in the month of April, June & July of 2018 in which we recorded as high as 17% growth,” he said.
The overall exports in the month of September is close to US$28 billion, which is the minimum exports we are looking for each month so as to reach milestone of US$350 billion, said Gupta.
The high growth witnessed in plastic and linoleum products, organic & inorganic chemicals, petroleum products and growth in drugs & pharma, cotton yarns/fabrics/made-ups and handloom products are positive signs for future exports, opined Gupta.
The import growth in September 2018 is also lowest in the last five months at 10.45% bringing the trade deficit to the lowest level in past five months at US$13.98 billion.
The reduction in trade deficit would ease out concerns of current account deficit and may sombre the Rupee fluctuation to some extent, said the FIEO Chief.
Gupta reiterated his demand for augmenting the flow of credit to export sector as sharp decline in credit, when exports are growing at the double-digit, does not augur well for the future.
He appreciated the initiative taken by the Finance and Commerce Ministers for addressing the issue and hope banks will positively respond to it.
Gupta exuded confidence that despite increasing protectionism and high volatility in currencies, Indian exporters have managed well to get new orders and remain bullish on exports in short to medium term basis. fiinews.com