SME Times News Bureau | 12 Dec, 2013
Reacting to the trade data for the month of November, M.Rafeeque
Ahmed, President, Federation of Indian Export Organisations (FIEO) said that
one month data showing single digit growth does not reflect the true picture.
President, FIEO added that delays at one of the major ports has also
contributed to it besides modest performance of sectors such as Gems &
Jewellery, Electronics, Petroleum, Plantations, Raw Cotton and Pharma.
Recent strike at NSICT, which lasted for almost 12 days and the Go-Slow movement
at the GTI Terminals in November, resulted in large congestion at the JN Port
Terminal which has affected the movement of Export containers, due to shut-outs
and congestion. Terminals had to suspend receiving export containers due to
lack of space as a sequel of strike affecting exports in November. These
exports will be added in current months exports added Ahmed.
Ahmed said the softening of crude prices has brought down oil import bill but
also pull down petroleum exports.
In Gems & Jewellery, the decline is contributed to jump in rough diamond
prices resulting in lesser imports consequently lower export of cut and
polished diamond and value added exports. However, stablisation of pricewill
push their exports in forthcoming months.
In pharmaceuticals, the increasing competition from China and slowdown in
Europe coupled with recent FDA scrutiny has slowed down exports, said FIEO
Chief, but development in US and EU will help the sunrise sector to bounce back
in this fiscal along with grant of FDA clearance to new pharma units.
Rafeeque Ahmed said that exports targets for the current fiscal will be
achieved easily and November figure may be seen as aberration for reasons
enumerated above. He also added that trade deficit will be within USD 140-150
Billion in the current fiscal as against USD190 Billion recorded in 2012-13
which will also help in keeping CAD between USD 50 -60 Billion.