Govt urged to address key issues
The Federation of Indian Export Organizations (FIEO) expects to end financial 2020-21 with overall merchandise exports of about US$290 billion supported by increasing orders and enquiries as well as resilience in the global supply chain.
Stating this on 3 Dec 2020, FIEO President Sharad Kumar Saraf noted that the November 2020 exports of US$25.77 billion have shown a single-digit negative growth of 9.07%, due to supply-side disruptions including restricted container movement and declining petroleum exports as crude prices crashed.
Besides, farmers” agitation in some of the hinterland states has also affected exports during the month.
Exports have been seeing signs of revival as order booking position has continuously improved and more new orders are in the offing.
Saraf reiterated that the forecast of the arrival of the Covid-19 Pandemic vaccine along with the gradual lifting of lockdown across the country and the globe has also helped in boosting the business sentiments for the sector.
“The litmus test for the traditional sectors of our exports would be the Christmas and New year sale. If that goes well, the inventory will be liquidated, adding to further demand,” hoped Saraf.
FIEO Chief listed products and goods showed either a very high or impressive growth or were in positive territory showing signs of further revival. These included cereals, oil meals, iron-ore, rice, ceramic products and glassware, handicrafts excluding hand-made carpet, cereal preparations and miscellaneous processed items, carpet, jute mfg. including floor covering, spices, drugs and pharmaceuticals, tobacco, cotton yarn, fabrics, made-ups, handloom products etc., fruits and vegetables, tea, gems and jewellery, mica, coal and other ores, minerals including process, meat, dairy and poultry products as well as electronic goods.
The concern in the November export basket was relating to major products including petroleum products, leather and leather manufacturers, cashew, plastic and linoleum, marine products, oilseeds, man-made yarn, fabrics, made-ups etc., engineering goods, organic and inorganic chemicals, coffee and RMG of all textiles.
However, November 2020 import was down by 13.33% to US$33.39 billion compared to the same period during the previous fiscal which led to a trade deficit of just US$9.96 billion, a substantial decline of 21.93% the month.
FIEO President urged the government to address some of the key issues including adequate availability of containers, softening of freight charges, the release of the required MEIS benefits, resolving risky exporters issues, immediate introduction of RoDTEP across all sectors, the introduction of NIRVIK Scheme for credit disbursement, long-pending demand for the creation of a fund for the marketing of Brand India products.
Among other issues faced by exporters, he called for clearances of infrastructure bottlenecks at customs and ports which are required to revive exports during the last 4 months of the fiscal. #exports #infrastructure #manufacturing #investment #banking /fiinews.com
