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 FIEO chief.

“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 import. 

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.