Dr Sakthivel says it is a stark reality that most economies are facing contraction
The slowdown in merchandise export is a reflection of the toughening global trade conditions facing demand slowdown on account of high inventories, rising inflation, economies entering recession, high volatility in currencies and geopolitical tensions, says FIEO President, Dr A Sakthivel
“The drop in commodity prices and restriction on some exports, with a view to stem the price increase in the domestic market, have also affected the growth numbers,” he said in comments on India’s October exports.
India’s overall exports (Merchandise and Services combined) in October 2022 were estimated to be US$58.36 billion, an increase of 4.03% over the same period of last year, the Commerce and Industry Ministry said on 15 Nov 2022.
Overall imports in October 2022 were estimated to be US$73 billion, an increase of 11.82% over the same period last year.
Dr Sakthivel noted a decline in exports of major labour-intensive sectors including engineering goods, apparels and textiles, gems & jewellery, petroleum product, organic & inorganic chemicals, drugs & pharmaceuticals, marine products, leather & leather products besides many agri product sectors is of particular concern as these sectors are key to huge employment generation.
At the same time, the growth in exports of electronic goods on a sustained basis is a good sign besides growth in exports of few agri product sectors including oil seeds, oil meals, tobacco, tea and rice, he appreciated.
“While we should not draw solace from the fact that exports of most of the economies are facing contraction but this is a stark reality,” he pointed out.
The FIEO President said that the coming months would be quite challenging unless both global economic growth and geopolitical situation improves drastically.
However, the decline in imports is encouraging despite the jump in import of petroleum, crude & products, fertiliser, and transport equipment, he observed.
“We hope that the energy prices will come down further to provide more relief to us on the trade deficit.” fiinews.com
