Reiterated Demand for Export Development Fund
FIEO President Sharad Kumar Saraf has called for a special economic package for the labour-intensive export sector which would help revive India’s foreign trade sector.
He made the call as global trade forecast showing a gloomy picture.
Saraf also added that the need of the hour is to immediately provide additional MEIS of 2% across the board and 4% for labour-intensive sectors, besides allowing rollover of forwarding cover without interest and penalty and automatic enhancement of limit by 25% to address liquidity challenges.
He also called for further creation of the long-pending demand for Export Development Fund and reforms measures for ease of doing business which will give a much-needed boost to the exports sector and the overall economy.
He also acknowledged that the implementation of the economic measures announced at the ground level for a quick and full-fledged start of trade, businesses and supply chain across the country will further help in reviving the sector.
He also pointed out that May export figures show drastic arrests in the fall of exports due to the start of businesses and order enquiries from the US and EU.
Reacting to a high double-digit decline in monthly exports during May 2020 by 36.47% at US$19.05 billion, Saraf said that though the decline again has been towards the higher side, there is drastic arrest in fall of exports during the month compared to April 2020.
“And this has been because of the partial start of businesses across the country and business/order enquiries from the markets like the US and EU.
“Revival still seems a very slow process as the global business sentiments are at its lowest, impacting the supply chain and bringing slump or recessionary conditions in the economies across the world,” said Saraf on 15 June 2020.
Saraf pointed out that the exports during the month for emergency and essential items like drugs & pharmaceutical products and rice besides iron-ore were in positive territory with nominal growth.
The reason being lockdown measures followed across the world, disruption of supply chains and major cancellations in orders except for drugs and pharma.
Twenty-seven out of the 30 major product groups showed higher double-digit negative growth during May 2020. Further imports also showed a high double-digit decline of 51.05% during the month with US$22.20 billion. fiinews.com