Port Wings News Network:
Reacting to the trade data, FIEO President, Mr Ganesh Kumar Gupta has said that the exports data for the financial year 2017-18 are encouraging.
However FIEO is really concerned and worried about the labour-intensive sectors such as gems & jewellery, RMG of all textiles, jute manufacturing including floor covering, carpets, agri products and many other sector of exports, dominated by MSME, which are into negative territory and are still facing the problem of liquidity as banks and lending agencies are tightening their norms, which does not augur well for exports for the new fiscal added Mr Ganesh Kr Gupta.
Mr Gupta also said that though the global scenario reflecting forecast for global trade by WTO in 2018 at 4.4 percent and may moderate to 4 percent during 2019 shows encouraging scenario for global exports, however trade tensions may pose challenges for exports.
FIEO Chief also expressed his concern with the rising trade deficit, primarily on account of swelling of crude imports bill with northward movement of prices. Moreover, the export growth has not been able to keep pace with import growth, which for the month of March, 2018 showed a growth of 7.15 percent against export growth of -0.66 percent, leading the trade deficit for the fiscal to surpass well over USD 150 billion mark.
Only 18 out of 30 major product groups were in positive territory during March, 2018 including engineering, organic & inorganic chemicals, drugs & pharmaceuticals, cotton yarn/fabs/made-ups, handloom products and rice have shown positive exports growth during March, 2018.
Mr Gupta said that domestic issues affecting exports should be looked into as global challenges and increasing protectionism, has led to world largest exporter, China’s exports to also fall by 2.7 percent during March, 2018 recording a rare trade deficit of USD 4.98 billion.