Dr Sakthivel hopes for export pickup in July with festive season orders
Dwindling international demand situation led to a fall in overall May 2023 exports, says FIEO President Dr A Sakthivel, pointing out that exports had declined during the month from major economies.
India’s overall exports (Merchandise and Services combined) in May 2023 was down by 5.99% on the year to estimated US$60.29 billion, Commerce and Industry Ministry said on 15 June 2023.
May import was also down 7.45% at US$70.64 billion compared to May 2022.
Responding to the decline in May exports, Dr Sakthivel pointed out that international demand has weakened with major economies including the US and China showing downward trend in exports.
The Eurozone has entered into technical recession after the region’s economy shrank by 0.1% in Q1 2023, marking two consecutive quarters of contracting GDP.
The slowdown comes in wake of higher energy prices contributing to curbing demand in Europe’s largest economy and surging inflation, added Dr Sakthivel.
One of the reasons for moderating pace of growth in merchandise exports significantly in 2023 have been the persistent geopolitical tensions, monetary tightening and recessionary fears which has continuously led to a fall in consumer spendings across the globe especially in advanced economies, noted the FIEO President.
“We hope that exports will start showing better growth numbers starting July 2023, as things are expected to improve from Q3 of the Calendar year, with fresh orders or order bookings for festival and New Year season beginning to come,” he said.
Some of the key sectors which have shown positive growth during the month of May 2023, include electronic goods, ceramic products & glassware, drugs & pharmaceuticals, iron ore, fruits & vegetables, oil meals, oil seeds, cashew, spices, tobacco, other cereals, rice, tea and coffee.
He said that though the decline in imports is a good sign for the country, however, that has also led to de-growth in key export sectors like petroleum products, gems & jewellery, organic & inorganic chemicals etc.
He further reiterated that the need of the hour is to provide further momentum to the economy through easy and low cost of credit to the MSMEs, a very-long pending demand of the exporting community of marketing support for further promoting Brand India products and services globally and GST exemption on Freight charges.
Besides, the interest equalisation support across all sectors of export and 3-6 months transition period may be provided, whenever a major change is notified in the Foreign Trade policy which will provide much needed cushion during such tough and challenging times, he said on 15 June 2023. Fiinews.com
