FIEO President concerned about increase in imports
The softening of commodities prices from the elevated level in 2022 contributed to the decline in Indian exports in November 2023, according to FIEO President, Dr A Sakthivel.
“Exports from almost all countries are exhibiting declining trends, many witnessing a double-digit dip,” he said, reacting to a 2.83% decline in November exports to US$33.9 billion as against US$34.89 billion a year ago. He attributed the drop in exports to rising uncertainties, slow global economic recovery and demand.
Dr Sakthivel added that Russia-Ukraine War along with tensions in West Asia has also further increased the sense of scepticism and nervousness among the businesses and markets across the world.
While goods exports have shown minor decline during the month, services continued with its growth momentum and maintained the rising trend, helping to narrow the trade deficit.
Fifteen out of the 30 major product contributors to export growth in November 2023 include Iron Ore, Gems & Jewellery, Drugs & Pharmaceuticals, Fruits & Vegetables, Meat, Dairy & Poultry Products, Mica, Coal & Other Ores, Minerals Including Processed Minerals and Cotton Yarn/ Fabs. /Made-Ups, Handloom Products Etc.
The FIEO President also said that the increase in imports is a cause of concern, which should be investigated seriously through analytical profiling of the same.
However, an increase in gold and silver imports would give a much-needed push to jewellery exports in next few months, he said in comments on exports on 15 Dec 2023.
He reiterated that the need of the hour is to provide much needed momentum to exports sector through easy & low cost of credit, marketing support besides Interest Equalization to the all sectors of export.
He believes that the conclusion of key FTAs with UK, Oman and EU might see the light of the day soon. Further adding to that a strategy soon should be chalked out for promotion of all the labour-intensive sectors of exports in consultation with the key stakeholders of the trade. Fiinews.com
