SME Times News Bureau | 16 Jan, 2019
Exporters' body FIEO on
Tuesday said slow growth in exports in December was due to uncertain global
cues and domestic challenges.
Responding to the December exports
data, FIEO President Ganesh Kumar Gupta said that the data yet again have shown
a marginal growth due to uncertain global cues and challenges on the domestic
front.
China’s exports contracted in
December 2018 highlighting fragile global conditions, he added.
However exports during the
month was close to USD 28 billion with a growth of just 0.34 per cent, even
when the weakening global economic outlook are showing no signs of respite,
said the FIEO Chief.
But during the month, the sectors which were showing high growth in the
previous months are now witnessing nominal growth or marginal growth such as
the Petroleum sector, Organic & Inorganic Chemicals, Plastic &
Linoleum, Electronic goods and RMG of all textiles.
All major labour-intensive
sectors of exports like Gems & Jewellery, Engineering, Leather &
Leather products, Man-made yarns/fabs/made-ups, Handloom products, commodities
including most agri products are now in negative territory, viewed Gupta.
17 out of 30 major product groups were negative territory during December,
2018.
However on the imports front,
the growth in December, 2018 was on negative side with -2.44 percent mainly due
to reduction in gold and pearls, precious & semi- precious stones import.
Spin off effect due to global
trade war has also impacted the country's trade impacting both imports and
exports, said Gupta.
The FIEO Chief once again reiterated his demand for urgent and immediate
support including augmenting the flow of credit and better fiscal
support.
He exuded confidence that despite current growth
trends the exporters will manage to do well ending the fiscal with merchandise
exports of USD 340-350 billion with the timely and much needed support of the
government.