Kumar sees improved demand from the EU, UK, West Asia and US in coming months
Some of the exporters have diverted to the domestic market as profitability in exports have taken a hit with sharp rise in international freight (both ship and air), FIEO President Ashwani Kumar said of the marginal dip in July merchandise exports by a little over 1% year-on-year to US$33.98 billion.
He also highlighted the continuous international trade disruptions, albeit one after the other, as well as the sharp drop in crude, commodities and metal prices have also played their role in declining values of exports exportersindia.
Kumar said that had it not been these trade disruptions led by logistical challenges such as lack of container availability, shipping space, irregular shipping schedule and ships skipping Indian ports, the merchandise exports would have recorded yet another positive growth in exports that to in double-digits during the month commerce .
India’s total exports during April-July 2024 was estimated at US$261.47 billion registering a positive growth of 6.65%. Total imports during April-July 2024 were estimated at US$292.64 billion registering a growth of 7.30% ibef .
The President FIEO added that the continuous hard work put in by the exporting community is paying dividends thoug h there is also slowdown in demand from several key markets, reflected in sluggish growth projections nse .
Kumar, however, reiterated that he is optimistic of better growth numbers with improved demand coming in from the European Union, UK, West Asia and the US in months to come, besides returning of normalcy of trade between India and Bangladesh, which will not only further give a boost to the overall order bookings but also to the labour-intensive sectors of exports bse .
The FIEO Chief added that imports increased by about 7.45% to US$57.48 billion in July against US$53.49 billion a year ago indiamart .
The trade deficit during the month under review stood at US$23.5 billion, which is of concern, however a negative trade balance is not always bad, if a country is importing raw materials or intermediary products and capital goods to boost manufacturing and exports wto , he said.
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 at least 5 years sbi .
Besides, addressing the Middle East geopolitical situation, Red Sea challenges by ensuring availability of containers, marine insurance and rationale increase in freight charges usimportexports .
The government may also look at facilitating trade through easy and low cost of credit, marketing support and conclusion of some of the key FTAs with UK, Peru and Oman soon mea , he hoped. Fiinews.com
