Saraf sees vaccines putting life and economy on v-shaped recovery globally
FIEO President Sharad Kumar Saraf said that India’s December exports have moved towards positive territory as major export products show signs of further revival as expected.
The marginal decline of just 0.8% with US$26.89 billion of exports showing signs of revival as order booking position has continuously improved besides more new orders in the offing, he said.
Saraf also noted that 2021 has brought a ray of hope and optimism for all from the worst of Covid-19 and effective vaccines are expected to bring both life and economy back on a growth trajectory with a v-shaped recovery in world trade.
The arrival of vaccines has also helped in boosting the business sentiments for the sector as a whole which can be further seen from the positive figures of the upcoming months, he observed.
“December exports also signals that our traditional and labour-intensive sectors of exports have passed the most challenging and testing times as both Christmas and New Year Season sales have shown positive trends with further improvement in coming months.”
“Going ahead by this trend, we expect our inventories to be liquidated, adding further to the overall demand,” observed Saraf.
The FIEO Chief said that the exports of other cereals along with oil meals, iron-ore, cereal preparations and miscellaneous processed items, jute mfg. including floor covering, handicrafts excl. hand-made carpet, carpet, ceramic products and glassware, drugs and pharmaceuticals, spices, electronic goods, fruits and vegetables, organic and inorganic chemicals, cotton yarn/fabrics/made-ups, handloom products etc., rice, meat, dairy and poultry products, gems and jewellery, mica, coal and other ores, minerals including process, tea and engineering goods showed either a very high or impressive growth or were in positive territory showing signs of further revival.
Saraf highlighted key concerns during December due to reduced exports of major constituents of the export basket which are related to labour-intensive sector. These are petroleum products, oilseeds, leather and leather manufactures, coffee, RMG of all textiles, man-made yarn/fabrics/made-ups etc., marine products, cashew, plastic and linoleum and tobacco.
However, an increase in imports during December 2020 by 7.6% to US$42.60 billion compared to the same period during the previous fiscal led to a trade deficit of US$15.71 billion with a substantial increase of 25.88% during the month.
FIEO Chief also said that the operationalization of the new RoDTEP effective from 1 January 2021 will remove uncertainty from the minds of the trade and industry and being WTO compatible, the same would provide complete rebating of Indian exports by refunding the taxes including embedded taxes, not rebated through any other mechanism.
However, notification of the rates is the need of the hour.
Saraf 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 and clarity on SEIS benefits, resolving risky exporters issues, the introduction of NIRVIK Scheme, long-pending demand for the creation of an Export Development Fund for the marketing of Brand India products and various other infrastructure bottlenecks with regard to customs and port clearances, which will further help in giving a boost to exports not only in FY’ 2020-21 but also for the upcoming new fiscal. #exports #trade #investment #shipment #manufacturing #supplies #demand /fiinews.com
