SME Times News Bureau | 28 Jun, 2018
association FIEO has expressed concern over dismal growth in exports
by micro, small and medium enterprises (MSMEs) and labour-intensive
sectors in May.
FIEO President Ganesh Kumar Gupta said that the exports data for
the second month of the fiscal though have shown a robust growth but
MSME units particularly in labour-intensive sectors such as gems &
jewellery, leather & leather products, RMG of all textiles, jute
manufacturing including floor covering, carpets, handicrafts, agri
products and many other sector of exports are either showing very
modest growth or are into negative territory.
These sectors are still facing the liquidity crunch as banks and
lending agencies have continuously been tightening their lending
norms, as reflected in sharp reduction in exports credit, which does
not augur well for their exports, he added.
exports rose by 20.18 per cent in May to $28.86 billion from $24.01
billion of merchandise shipped out during the corresponding month of
last year, but trade deficit widened due to high oil prices.
however said that a lot of cushioning this time around has been
provided by the petroleum sector to exports, as it not only
outperformed but had an over impressive growth of about 105%.
FIEO Chief once again expressed his concern on the rising trade
deficit, primarily on account of swelling of crude imports bill due
to rising global oil prices, which would further add to inflationary
conditions and also on the current account deficit front.
to official figures, 23 out of 30 major product groups were in
positive territory during May, 2018.
Besides petroleum, engineering, organic & inorganic chemicals,
drugs & pharmaceuticals, cotton yarn/fabs/made-ups, electronic
goods and plastic & linoleum etc. have also shown positive
exports growth during the month.
Gupta said that domestic
issues including access to credit, cost of credit especially for
MSMEs should be seriously looked into as global challenges and
increasing protectionism, has also added to the woes of the
He also said that uncertainties in exports due to increasing
protectionism and sanctions on Iran and Russia is adding to our woes.
He requested the government to explore the possibility of trade in
Indian rupees with the two countries.