SME Times News Bureau | 02 Oct, 2020
Exporters body FIEO on Friday viewed that
September exports have grown by 5.27 to USD 27.40 billion first time during the
financial year 2020-21 showing signs of revival as gradual lifting of lockdown
have further improved the business sentiments.
Reacting to September 2020 export figures,
FIEO President Sharad Kumar Saraf said that anti-China sentiments across the
globe has also been one of the reasons for the improved performance in exports.
Besides, the exporters must be complimented
for their excellent performance in spite of these challenging times, he added.
Saraf reiterated that the arrest in decline
of exports started during July with a lower negative double digit decline of
10.21 percent from a very high negative double digit decline of 60.28 percent
during April, 2020 caused mainly due to lockdown measures followed across the
globe because of Covid-19 pandemic.
As business activities and economic
sentiments are inching towards normalcy globally, Saraf added that exporters
have started receiving a lot of enquiries and orders from across the globe
helping many sectors to further show improved export performance, which is
likely to get better and better in next few months.
The FIEO Chief, further added that
integration in the global supply chain has also started showing signs of resilience
further helping to give a boost to the Indian economy.
Saraf said that the exports of agri
products, plantation & other cereals along with iron ore, carpet, ceramic
products & glassware, drugs & pharmaceuticals, handicrafts excluding handmade
carpet, meat, dairy & poultry products, jute mfg. including floor covering,
cotton yarn/fabs/madeups, handloom products etc., RMG of all textiles, plastic
& linoleum, petroleum products, engineering goods, organic & inorganic
chemicals and electronic goods showed either a very high or impressive growth
or were in positive territory showing signs of further revival.
However, reduction in imports during
September 2020 by 19.60 percent to USD 30.31 billion compared to the same
period during the previous fiscal led to a trade deficit of just USD 2.91
billion with a substantial decline of 75.06 percent during the month.
Reduction in import of precious metals
including Gold and Silver along with leather & leather products used as raw
material for gems & jewellery and leather & leather product exports has
also seen a negative growth during the month which does not augur well for
these major labour-intensive sectors of exports, he said.
With the WTO trade estimates for the second
quarter putting the contraction only at 13 percent and the country’s exports
showing signs of revival, Saraf is of the view that going with this trend,
India’s exports is likely to be in the range of USD 290-300 billion during the
current fiscal.
Which itself would be an impressive
performance from the overall exporting community and for the sector as a whole
who are facing such tough global conditions.
The FIEO Chief reiterated that the urgent
and immediate need of the hour is to address some of the key issues including
the release of the MEIS benefits, resolving risky exporters issues, early
introduction of RoDTEP across all sectors, capping of Rs 2 crore MEIS per IEC,
introduction of NIRVIK Scheme and expediting introduction of the E-Wallet
Scheme, which will further help in reviving the exports during these difficult
and torrid times.