SME Times News Bureau | 17 Jan, 2020
Reacting to
a marginal decline in December exports by 1.80 percent at USD 27.36 billion
during the month, FIEO President Sharad Kumar Saraf said that global and
domestic factors have again led to the decline in exports.
Protectionism
coupled with a few other key factors including trade war, escalation of tension
between Iran and the US and slowdown in economies across the globe has further
added to the woes of the India's exports sector, added Saraf.
FIEO Chief
said that with major global players including China also losing its sheen in
exports, the Indian exports is passing through a very tough and challenging
times.
The currency
volatility besides fluctuation in commodities prices including that of crude
have also led to the decrease in exports of petroleum, which is a major
constituent of India’s exports.
Only 11 out of
the 30 major product groups were in positive territory during December 2019
including electronic goods, drugs & pharmaceuticals, iron ore, marine
products, RMG of all textiles, man-made yarn/fabs/made-ups, cotton
yarn/fabs/made-ups, handloom products and couple of plantation sectors
have shown some positive or marginal growth.
However, all
other major sector of exports including almost all labour-intensive sector of
exports were still in negative territory. Further imports of USD
38.61 billion with a negative growth of 8.83 percent during the month has yet
again come as a big respite for the economy.
Saraf said
that domestic issues including uncertainty over MEIS Scheme was a major cause
of concern as exporters' claim for over 5 months are still pending, which has
completely wiped out their liquidity and has kept them in doldrums with regard
to finalising new contracts. The problem of risky exporters have further
compounded the liquidity problem as their GST and Drawback claims have also
been held up.
Saraf
reiterated that the stalemate over MEIS for apparels and made ups should be
resolved immediately.
Besides,
RoDTEP should be notified with immediate effect for all the products with lead
time of at least 3 months now so that exporters may factor the same in
finalising new orders and making their transition to the new scheme smooth
while continuing with MEIS in the interim period.