SME Times News Bureau | 17 May, 2019
Global trade tensions between the US and China, two
largest economies in the world, may affect India’s dwindling exports, said FIEO
President Ganesh Kumar Gupta.
With rising trade tensions between US and China, the
global trade scenario may further worsen, putting more pressure on Indian
exports in months to come, said Gupta.
The uncertainty attached to it will affect the flow of
investment and add to currency volatility, he added.
Labour intensive sectors are facing the heat, said the
“These sectors are still facing the problem of liquidity
besides various other challenges including global trade
war, protectionism, fragile global conditions and constraints on the
domestic front,” he said
Only 14 out of 30 major product groups were in positive
territory during April, he pointed out.
FIEO Chief also expressed his concerns on the rising
trade deficit primarily on account of swelling crude import bill with further
northward movement of prices and ban on Iranian imports along with rising gold
Gupta said that domestic issues including access to
credit, cost of credit especially for merchant exporters, interest
equalization support to all agri exports, benefits on sales to foreign tourists
and exemption from IGST under Advance Authorization Scheme with retrospective
effect should be seriously looked into.
Besides these, budgetary support for marketing and
exports related infrastructure are some of the other key issues, which needs
immediate attention of the government, he added.