Port Wings, 27 June 2018:
After several months of negative growth in exim sector, there are some positive signals coming out to the Narendra Modi-led Union Government.
The latest data released by the Ministry of Commerce has revealed that the fall in India’s exports has been arrested of late and the gap is decreasing month by month.Furthermore, it is also good for the Narendra Modi to go full swing during the election-year to regain the lost ground to get the new term till 2024.
Ecstatic about the latest figures, Commerce Ministry announced that it is time to extend incentives to boost the overseas shipments.
It may be noted that the data recorded exports falling down for the 18th month in a row in May, non-oil sectors such as engineering and gems and jewellery saw a rise in outward shipments. The decline in May was lowest since December 2014.
The Union Government was under fire for months as exports were falling for the past 17 months and panacea to arrest the downfall was not at all visible in any direction.
However, the government maintained that things could change, as it is cyclical in any sector. And their firm belief coupled with micro-management of affected areas finally helped the government to stop the falling.
On the other hand, there are some economic pundits, who paint the reduction in fall as impact of global phenomena. It may be noted that shipments usually increases in the first few months in financial year due to various reasons.
And, the exports are bound to increase in June and July due to the onset of long festival season in various countries.
While the negative growth has given enough room for the Centre to adapt to the ground reality, it has also given a new dimension in the policy making, which is paramount to secure the economic interest of any country.
Last week, Commerce Ministry has announced several measures to support exim community. And with the arrest, it has more in store and once all the cylinders are fired in tandem, the measures will definitely bring the much needed results and put exports in solid trajectory.
Commenting on the trade data for the month of May, Mr Gupta, President, FIEO, said that exports are all set to take off from here onwards and India can look for double digit growth, which may pave the way for reaching USD 300 Billion in the current fiscal.
The FIEO President also expressed satisfaction with increasing exports to China, which will help in bridging rising trade deficit with China.
While the exports are bouncing back, time has come to take some bold steps to limit logistics cost, which needs to be brought down to impart competitiveness to exports and manufacturing.