SME Times News Bureau | 15 Feb, 2019
Exporters' association FIEO on Friday said the
nominal exports growth India registered in January is due to weaknesses both in
global and domestic economies.
Reacting to the January, 2019 exports data,
exhibiting exports of USD 27 billion with a growth 3.74 percent, FIEO
President Ganesh Kumar Gupta said that nominal growth in exports is due to
tough global condition and some constraints on the domestic front.
Global trade growth is slowing down and global
economies including China and South East Asian nations are also facing
contraction in manufacturing worsening the fragile global situation.
Almost all the sectors during the month have shown
nominal growth. However Petroleum was one of the sectors which showed higher
negative growth further pulling down the overall exports for the month by about
3 percent, opined Gupta.
22 out of 30 major product groups were in positive
territory, though many with marginal growth during January, 2019, he added.
On the imports front, January, 2019 saw meagre
growth of just 0.01 percent that too due to increase in gold import. Spin off
effect due to global tariff war has continuously been impacting the country's
trade both imports and exports, he said.
The FIEO chief once again reiterated his demand for urgent and immediate
support including augmenting the flow of credit, higher tax deduction for
R&D and better fiscal support including augmenting the budgetary support
for marketing and exports related infrastructure.
He said that India can gain a lot from ongoing
tariff war by creating production capacities so as to meet the demand of major
economies.