SME Times News Bureau | 16 Oct, 2019
Responding
to the sliding merchandise exports growth of -6.57 percent with USD 26.03
billion during September 2019, FIEO President Sharad Kumar Saraf said that
declining trend in exports does not augur well for the overall growth of the
economy.
Escalating
trade tensions that has unsettled the slowing world economy have also led WTO
to sharply cut their trade forecasts for both 2019 and 2020 to 1.2 and 2.7
respectively, added FIEO President.
The downside
risks still remain high in the global economy and the projection for 2020
depends on a return to more normal trade relations said Saraf.
The
softening of commodities prices including crude, US-China Trade war, Brexit and
developments in Iran, Turkey and other gulf nations has further aggravated the
problem of the world economy. The uncertainty attached has also affected
the flow of investment and added to currency volatility, he said.
Only 8 out
of 30 major product groups were in positive territory during September 2019
including electronic goods, drugs & pharmaceuticals, mica, coal & other
ores, minerals including processed minerals, ceramic products & glassware
and iron-ore sectors which showed some growth.
However
sectors like tea, spices and fruits & vegetables showed only marginal
growth during the month. All other major sector of exports including almost all
labour-intensive sector of exports besides petroleum were in the negative,
showing such a decelerating trend.
However
imports of USD 36.89 billion during the month has again come in the
form of some respite for the economy showing a decline of -13.85 percent.
Saraf said
that domestic issues including access to and cost of credit still remains a
problem area for MSMEs and especially for merchant exporters, interest
equalization support to all agri exports, benefits on sales to foreign tourists
and quick refund of GST specially ITC refund should be quickly and seriously
looked into.
Further WTO
complaint scheme of newly launched RoDTEP should be immediately deliberated and
drafted to give a much needed boost to the exports sector.