MSMEs still face liquidity crunch
Though August exports have shown higher double digit growth with upward trend, rising trade deficit still remains a concern, says the Federation of Indian Export Organizations (FIEO) President Ganesh Kumar Gupta.
Gupta reiterated his concern on the rising trade deficit, primarily on account of swelling of crude imports bill due to rising global oil prices and higher gold import, which has further added pressure on Indian Rupee.
August export grew by 19.21% compared to previous month with an increase of about 5%.
Though exports of some MSMEs have come into positive territory, the others are still in negative territory or have shown negative growth during the month, he said.
Gupta remains concern about small and micro sectors which are still reeling under pressure because of the liquidity crunch as banks and financial institutions have continuously been tightening their lending norms.
He also poined out that ITC refund for exports still poses a challenge.
The main reason behind the impressive growth shown by gems and jewellery exports have been the increased import of gold and pearls, precious & semi-precious stones, according to Gupta.
Only 17 out of 30 major product groups were in positive territory during August. fiinews.com
