SME Times News Bureau | 01 Jan, 2020
FIEO President Sharad Kumar
Saraf on Tuesday said that the global situation is becoming extremely
challenging as rising protectionism is leading to uncertainty in global trade
which will have adverse impact on it.
Despite having moderate share
in global trade, India’s exports have always followed the trend in global
imports. Therefore, when global imports are declining, our exports are also
likely to take a hit, Saraf said.
Currently, India’s merchandise
exports during April-Nov, 2019 are down by about 1.99%. Therefore, we feel our
goods exports may touch USD 330-340 billion in the current fiscal, added Saraf.
Fortunately, the order book position
of Indian exporters are very encouraging. The less volatility in our currency
has also been a positive factor. The liquidity is also improving though we
still have a lot of distance to cover.
FIEO President also added that
the infrastructure improvement and initiatives on the logistics front will
impart further competitiveness to our exports.
If the global situation
improves, which is likely in the first half of 2020, we may look for 15% growth
in exports during the next Financial Year, he said.
The FIEO chief, however,
reiterated that Indian exports have to be aligned with changing import patterns
of global economy.
50% of the global imports
today is accounted by electrical & electronics products, automobiles,
machinery, petroleum products and plastics products. Unfortunately, the share
of such products in our exports is less than 33% despite having petroleum
products accounting for roughly half of it.
Our global share in such products
is much less than 1%.
Saraf further added that
India’s exports of high technology products are USD 20 billion, whereas
Malaysia’s exports are USD 90 billion, Singapore USD 155 billion, South Korea
USD 192 billion and China, a whopping, USD 652 billion.
While employment intensive
sectors should be pushed in exports, the new strategy should focus on
technology driven sectors as stated above.
India having R&D advantage
and professional manpower at its disposal should concentrate on such sectors
where global trade is likely to rise further.
FDI in high technology could also
help in expanding our high technology exports and cornering a greater share in
global imports thereby increasing our share to about 2% in the next 3 years,
said the FIEO President.