Reacting to a
marginal decline in December exports by 1.80 percent at USD 27.36 billion
during the month, FIEO President, Mr 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 Mr Saraf.
Indian exports is passing through a very
tough and challenging times
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
in positive territory during December
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.
Problem of risky exporters compounded the
Mr 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 has further compounded the liquidity
problem as their GST and Drawback claims have also been held up.
Steps to take to help exporters transition
to new scheme smoothly
President FIEO 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.