SME Times News Bureau | 15 Nov, 2019
Reacting to
a marginal decline in October exports by 1.1 percent with USD 26.38 billion
during the month, FIEO President Sharad Kumar Saraf said that trade tensions
and rising protectionism has led to this marginal decrease in exports during
the month.
Further this
decline may also be attributed to the base year effect as compared to October,
2018, during which exports grew by about 18 percent.
Sluggishness
in the economies across the globe coupled with Trade War between US-China,
Brexit and developments in Iran, Turkey, Iraq other gulf countries that has
continuously unsettled the slowing world economy have further escalated the
problem.
The downside
risks still remain and the projections for the near future depends on a return
to more normal trade relations among countries said Saraf.
The currency
volatility, softening of commodities prices including crude prices have also
led to the decrease in exports of petroleum, which is a major constituent of
India’s exports.
Only 12 out
of the 30 major product groups were in positive territory during October 2019
including electronic goods, drugs & pharmaceuticals, Gems & Jewellery,
Engineering Goods, Marine Products, Organic & Inorganic Chemicals, Iron
Ore, Handicrafts Excl. handicrafts carpets, Jute Mfg including Floor Carpet and
few plantation sectors which showed some growth.
However few
of the export sectors have started showing some positive trend during the
month. All other major sector of exports including some
labour-intensive sector of exports were still in negative territory.
Further
imports of USD 37.39 billion with a growth of -16.31 percent during the
month has once again come as a big respite for the economy.
Saraf said
that domestic issues including uncertainty over MEIS Scheme is a major cause of
concern as exporters' claim for over three and half months are pending, which
has wiped out their liquidity and kept them in doldrums with regard to
finalising new contracts.
The problem
of risky exporters have also compounded the liquidity problem as their GST and
Drawback claims have been held up.
Further WTO
complaint scheme of newly launched RoDTEP should be notified with the rates for
the products with lead time of 3 months so that exporters may factor the same
in finalising new orders and make transition to new scheme smooth, said the
FIEO chief.