Saraf seeks early release of export-supporting schemes
The global supply chain has started showing signs of resilience further boosting the Indian economy, going by September 2020 exports, FIEO President Sharad Kumar Saraf noted.
Commenting on the improvements in shipments of Indian goods to the global markets, he appreciated that 22 major products out of 30 were in positive territory despite COVID-19 induced pandemic.
Reacting to September 2020 export figures on 15 Oct 2020, Saraf welcomed the monthly exports growth of 5.99% to US$27.58 billion, the first time during the financial year 2020-21.
These are signs of revival as the gradual opening of local lockdowns have further improved the business climate, he added.
The FIEO chief believes that anti-China sentiments across the globe have also been one of the reasons for the improved performance in exports.
He also complimented exporters for their excellent performance in spite of these challenging times.
The arrest in the decline of exports started during July with a lower negative double-digit decline of 10.21% from a very high negative double-digit decline of 60.28% during April which was then due to lockdown measures followed across the globe to fight COVID-19.
As business activities and economic sentiments are inching towards normalcy globally, Saraf noted that exporters have started receiving a lot of enquiries and orders from across the globe helping many sectors to further show improved export performance, which is likely to get better and better in next few months.
Looking at the performance of the labour-intensive sector of exports, especially drugs & pharmaceuticals, engineering goods, RMG of all textiles, carpet, jute manufacturing including floor covering and handicrafts, has not only been impressive but some of them have also shown higher double-digit growth, he observed.
Talking about major constituents of the export basket products have either turned positive or have started showing signs of revival with arrest in decline. These products include petroleum products, plastic & linoleum, engineering goods, electronic goods, organic & inorganic chemicals, gems & jewellery, leather & leather.
Meanwhile, September imports have also been reduced 19.60% to US$30.31 billion compared to the same period during the previous fiscal led to a trade deficit of just US$2.72 billion with a substantial decline of about 75% during the month.
Reduction in import of precious metals does not augur well for these major labour-intensive sectors of exports, he pointed out.
The import products include Gold, Silver, pearls, precious and semi-precious stones along with leather & leather products used as raw material for gems & jewellery and leather & leather products.
Saraf sees Indian exports at around US$300 billion during the current fiscal. This itself would be an impressive performance from the overall exporting community which is still facing global headwinds.
Comparatively, the WTO is projecting a 9.2% decline in the volume of world merchandise trade for 2020, followed by a 7.2% rise in 2021, he highlighted.
Yet, the FIEO Chief reiterated urgent and immediate need to address some of the key issues including the release of the MEIS benefits, resolving risky exporters issues, early introduction of RoDTEP across all sectors, removal of capping of Rs.2 crore MEIS per IEC, the introduction of NIRVIK Scheme, availability of container for exports, early clearance of both imports & exports at ports and expediting introduction of the E-Wallet Scheme.
These will further help in reviving the exports during difficult and torrid times faced by the global economies, he stressed. #exports #economy #investment #manufacturing #shipment /fiinews.com
