Saraf calls for a focus on FTAs-multilateral agreements
The start of business activities across major economies like the US, EU, Canada, Japan, South Korea, Australia and New Zealand has helped in bringing back the tempo to the Indian export sector, said Sharad Kumar Saraf.
He was commenting on August 2020 exports show similar trends as in July 2020 with double-digit negative growth of 12.66% at US$22.70 billion.
Exporters have started receiving a lot of enquiries and orders from across the globe helping many sectors to show improved export performance, which is likely to get better and better in next few months, said Saraf on 15 Sept 2020.
However, he said that integration in the global supply chain is yet another key for the revival of the exports sector.
Saraf is of the view that the focus now should also be on important FTAs and multilateral agreements to further give a boost to the exports and withstand the competition coming from smaller countries like Vietnam, Bangladesh and Malaysia.
Further with China seen with a sense of scepticism, this has come as an immense opportunity for India, Saraf pointed out.
Fourteen out of the 30 major product groups were in positive territory during August 2020. Exports in positive territory were showing signs of further revival with few showing impressive double-digit growth, he added.
The exports included emergency and essential items apart from some labour-intensive sectors including drugs & pharmaceutical, jute manufacturing including floor covering, carpet, plastics & linoleum along with some Agri, plantation and meat & dairy products besides iron-ore.
The FIEO President expressed his concern over yet again dip in figures from labour-intensive sectors of exports, which directly or indirectly impacts employment generation in the country.
He further reiterated that there is a need to analyse imports as well, as such a steep decline in imports may hamper the industrial recovery in the coming months.
“The growing enquiries and orders from new buyers and destinations show immense opportunity for Indian exports. Hence, there is an urgent and immediate need for a special support package for exports, which is facing huge liquidity challenges due to the stoppage of MEIS benefits and IGST refund now,” said Saraf.
He renewed calls for the creation of a long-pending demand of Export Development Fund with 1% corpus of the total value of exports during the last fiscal and addressing “risky exporters” issues apart from quickly deciding on RoDTEP rates are some of the key concerns. These should be immediately considered to give a much-needed boost to the exports sector and the overall economy and make India a key player in the global supply chain in the years to come. #exports #shipments #manufacturing #contracts #orders #financing #banks /fiinews.com
