SME Times News Bureau | 16 Mar, 2019
Responding to February, 2019
exports data, exhibiting a nominal growth of 2.44 percent with exports of USD
26.67 billion for the month, FIEO President Ganesh Kumar Gupta said that
exporters have managed to do well despite increasing protectionism, tough
global conditions and constraints on the domestic front.
FIEO Chief added that economies
across Asia especially China and South East Asian nations have been showing
signs of sluggishness with contraction in manufacturing due to slowdown in the
global trade and fragile world economy.
Almost all labour-intensive
sectors of exports during the month have moved into the negative territory
including gems & jewellery, leather & leather products, plantation,
handicrafts, carpets, jute manufacturing including floor covering, marine
products etc. besides Petroleum, which also showed negative growth further
pulling down the overall exports for the month, opined Gupta.
18 out of 30 major product groups
were in positive territory, with most of them with marginal growth during the
month. However with this trend, we will be able to achieve merchandise exports
of about USD 330 billion, the highest ever exports for a fiscal.
Imports during February, 2019
declined by 5.41 percent mainly due to decrease in imports of petroleum
products, precious and semi precious stones, gold and silver, which further led
down to the decline of exports from gems & jewellery and petroleum sectors.
Besides imports of transport
equipment and electronic goods were also down. All these sector of imports have
also pulled down trade deficit to a low of about one and half years, said Mr
Ganesh Kumar Gupta.
Spin off effect due to global
tariff war and the recent rise in crude oil prices due to supply cuts have also
impacted both India’s imports and exports, added Mr Gupta. In addition,
recently revoked GSP benefits by US on Indian products will further add to the
woes of the Indian exporters in the coming months.
FIEO President reiterated his
demand for urgent and immediate support including the issue of augmenting the
flow of credit, higher tax deduction for R&D, outright exemption from GST,
Online ITC refund, interest equalization support to agri exports, benefits on
sales to foreign tourists and exemption from IGST under Advance Authorization
Scheme with retrospective effect.
Besides these, budgetary support
for marketing and exports related infrastructure are some of the other key
issues, which needs to be looked into immediately, the FIEO chief said.