SME Times News Bureau | 15 Aug, 2020
Exporters’ association FIEO viewed that
there is an urgent need for an export fiscal package so as to revive foreign
trade of the country.
FIEO President Mr Sharad Kumar Saraf said
that as the global trade forecast still shows a gloomy picture, there is an
urgent and immediate need for a special exports package for reviving India’s
foreign trade.
Besides creation of an Export Development
Fund with 1% percent corpus of the total value of exports during the last
fiscal, MEIS of 2% across the board and 4% for labour-intensive sectors and
addressing "risky exporters" issues apart from quickly deciding on
RoDTEP rates are some of key concerns, which should be immediately considered
to give a much-needed boost to the exports sector and the overall economy, he
added.
Reacting to July exports, Saraf said that
monthly figures have further consolidated as continuous arrest in the decline
of exports have led to a lower double-digit negative growth of just 10.21
percent with USD 23.64 billion as against very high negative double-digit
growth during April and May this fiscal.
Saraf said that all this has been possible
because of the start of business activities across the country and
business/order enquiries from almost all major economies like US, EU, Canada,
Japan, South Korea, Australia and New Zealand which has helped in bringing the
exports sector to almost 90% of the level in July 2019.
Though the monthly exports data depicts a
lower double-digit decline in exports, but it must be seen in the context of
the recovery that has exceeded our expectation as the government through
constant interaction with exporters has been understanding and more importantly
addressing the exporters’ problems, added FIEO Chief.
Saraf however feels that the global revival
and business sentiments still have not picked up, impacting the global supply
chain. He is of the view that the focus should be on FTAs and more of
multi-lateral agreements to further revive our exports and take up competition
coming from smaller countries like Vietnam, Bangladesh and Taiwan.
16 out of the 30 major product groups were
in positive territory during July 2020 and imports during the month showed a
high double-digit decline of 28.40 percent with USD 28.47 billion.