SME Times News Bureau | 16 Dec, 2020
Responding to November 2020 export
figures, FIEO President, Sharad Kumar Saraf said that the monthly exports have
shown a single-digit negative growth of 8.74 percent with USD 23.52 billion due
to supply side disruptions including restricted container movement and
declining petroleum exports due to its crashing prices.
Besides, farmers agitation in
some of the hinterland states have also affected exports during the
month.
Exports have been seeing signs of
revival as order booking position has continuously improved and more new orders
are in the offing, he added.
Saraf reiterated that the
forecast of the arrival of the Covid-19 Pandemic vaccine along with gradual
lifting of lockdown across the country and the globe has also helped in
boosting the business sentiments for the sector as a whole, which can be
expected to be seen from the positive figures of the upcoming months.
Going by this trend, we expect to
end the financial 2020-21 with an overall merchandise exports of about USD
290 billion, added FIEO President.
Exporters have continuously been receiving a lot of enquiries and orders
further adding to the positive sentiments with signals of further resilience in
the global supply chain.
However, the litmus test for the
traditional sectors of our exports would be the Christmas and New year sale. If
that goes well, the inventory will be liquidated, adding to further demand,
observed Saraf.
The FIEO Chief said that the exports of other cereals along with oil
meals, iron-ore, rice, ceramic products and glassware, handicrafts excluding
hand-made carpet, cereal preparations and miscellaneous processed
item, carpet, etc. were in positive territory showing signs of
further revival.
Saraf also said that reduction in exports of major products including petroleum
products, leather & leather manufacturers, cashew, plastic & linoleum,
marine products, oil seeds, man-made yarn/fabrics/made-ups etc., engineering
goods, organic and inorganic chemicals, coffee and RMG of all textiles which
are major constituents in India’s export basket and related to labour-intensive
sector of exports have also been of key concern during the month.
However, reduction in imports
during November 2020 by 13.32 percent to USD 33.39 billion compared to the same
period during the previous fiscal led to a trade deficit of just USD 9.87
billion with a substantial decline of 22.57 percent during the month.
The FIEO President urged the government to address some of the key issues
including adequate availability of containers, softening of freight charges,
the release of the required MEIS benefits, resolving risky exporters issues, etc.