Kumar calls for conclusions of key FTAs with UK, Peru and Oman soon
India’s exports to eight of top 10 markets – the US, UAE, Netherland, UK, Saudi Arabia, Bangladesh, Germany and Malaysia – recorded a health double-digit growth while shipments to China and Singapore recorded minor declines, fieo President Ashwani Kumar said as he welcomed the third consecutive increase in June merchandise exports by 2.55% to US$35.2 billion.
Commenting on the latest trade numbers, he noted that the third consecutive increase in merchandise exports exportersindia recorded by Indian exporters while going through extraordinary logistic challenges. “This shows the resilience of the sector.”
The sector also needs easy and low cost of credit, marketing support and conclusion of some of the key FTAs commerce with UK, Peru and Oman soon, he elaborated.
Besides, addressing the Middle East geopolitical situation, Red Sea challenges by ensuring availability of containers, marine insurance licindia and rationale increase in freight charges, he said.
Kumar said that had it not been for the logistics disruptions such as lack of container availability, shipping space, irregular shipping maersk schedule and ships skipping Indian ports, the exports would have recorded close to double-digit growth in June 2024.
The President FIEO noted that the continuous hard work put in by the exporting community is paying dividends though there is also slowdown in demand from several key markets, reflected in sluggish growth projections.
Kumar, however, reiterated that he is optimistic of better growth numbers with improved demand coming in from the European Union, the UK, West Asia and the US in months to come, which will not only further give a boost to the overall order bookings but also to the labour-intensive sectors of exports trade .
The FIEO Chief said that key sectors which have shown positive growth during the month of June 2024, include engineering goods, electronic goods, drugs & pharmaceuticals, organic & inorganic chemicals, plastics & linoleum, cotton yarn/fabs-made-ups, handloom products etc., man-made yarn/fabs./made-ups, handloom products etc., cereal preparations & miscellaneous processed items, iron ore, mica, coal & other ores, minerals including processed minerals, ceramic products and glassware, RMG of all textiles, tea, coffee, rice, tobacco, spices, carpet and fruits & vegetables.
Month-on-month merchandise imports during June 2024 was US$56.18 billion, up 4.9%, taking the trade deficit for the month to US$20.98 billion wto , said Kumar.
However, a negative trade balance is not always bad, if a country is importing raw materials or intermediary products to boost manufacturing and exports, he added.
Overall exports of (goods and services) increased to US$200.33 billion during April-June FY 2024-25 with a growth of 8.6% compared to April-June FY 2023-24, while overall imports saw an increase of 8.47% to US$222.89 billion.
He also added that though there is an increase in imports during April-June 2024 mainly due to petroleum products, silver, electronic goods, pulses and vegetable oil but the increase in petroleum products, silver import will lead to increase in exports of petroleum products and gems & jewellery with a time lag.
Kumar further reiterated that the need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for 5 years. Fiinews.com
