SME Times News Bureau | 03 Nov, 2020
Exporters' association FIEO on Tuesday said that
the single-digit fall in merchandise exports is sign of revival in India's foreign
Reacting to October export figures released Tuesday,
FIEO President Sharad Kumar Saraf said that though the monthly exports have
shown a nominal single-digit negative growth of 5.4 percent with USD 24.82
billion, there are signs of revival as both order booking position and the
September Manufacturing PMI have risen.
Gradual lifting of lockdowns across the country has
also led to the increase in Manufacturing PMI to its highest level in over a
decade, he said.
The FIEO President also said that the nominal
decline in exports during the month has been mainly because of the huge
container shortage and hike in sea freight which has upset exports particularly
for those who have negotiated on CIF (Cost, Insurance, Freight) or C&F
(Cost & Freight) basis.
Besides, farmers agitation in some of the
hinterland states have affected exports during October, he said.
Saraf added that it is expected as the election process gets over in the US
with the upcoming Christmas and New Year season, both the global and India
economy are slated for economic revival.
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, he said.
The FIEO Chief said that reduction in exports of major products including
petroleum products, gems & jewellery and leather & leather
manufacturers which are major constituents in India’s export basket has also
been a key concern during the recent months, which needs to be analysed.
However, reduction in imports during October 2020
by 11.56 percent to USD 33.60 billion compared to the same period during the
previous fiscal led to a trade deficit of just USD 8.78 billion with a
substantial decline of 25.34 percent during the month, he added.
Saraf further added that rise in import of precious
metals including Gold and Pearls, Precious & Semi-Precious Stones used as
raw material for gems & jewellery product exports does augur well for this
major labour-intensive sector of exports, which has been reeling under
immense pressure since the country’s exports started showing negative growth.
The FIEO President reiterated that the urgent and immediate need of the hour is
to address some of the key issues including adequate availability of
containers, softening of freight charges, the release of the MEIS benefits,
resolving risky exporters issues, immediate introduction of RoDTEP across all
sectors, removal of capping of Rs 2 crore MEIS per IEC, etc.
He also called for introduction of NIRVIK Scheme,
long pending demand for the creation of Export Development Fund and various
other infrastructure bottlenecks with regard to customs and port clearances,
will further help in reviving the exports during these difficult and torrid