Uncertain Global Trade Influenced Negatively on Indian Exports Output: FIEO
Exporters’ body FIEO said slow growth in exports in December was due to uncertain global cues and domestic challenges.
Responding to the December exports data, FIEO President Ganesh Kumar Gupta said that the data yet again have shown a marginal growth due to uncertain global cues and challenges on the domestic front.
China’s exports contracted in December 2018 highlighting fragile global conditions, he added.
However exports during the month was close to USD 28 billion with a growth of just 0.34 per cent, even when the weakening global economic outlook are showing no signs of respite, said the FIEO Chief.
But during the month, the sectors which were showing high growth in the previous months are now witnessing nominal growth or marginal growth such as the Petroleum sector, Organic & Inorganic Chemicals, Plastic & Linoleum, Electronic goods and RMG of all textiles.
All major labour-intensive sectors of exports like Gems & Jewellery, Engineering, Leather & Leather products, Man-made yarns/fabs/made-ups, Handloom products, commodities including most agri products are now in negative territory, viewed Gupta.
17 out of 30 major product groups were negative territory during December, 2018.
However on the imports front, the growth in December, 2018 was on negative side with -2.44 percent mainly due to reduction in gold and pearls, precious & semi- precious stones import.
Spin off effect due to global trade war has also impacted the country’s trade impacting both imports and exports, said Gupta.
The FIEO Chief once again reiterated his demand for urgent and immediate support including augmenting the flow of credit and better fiscal support.
He exuded confidence that despite current growth trends the exporters will manage to do well ending the fiscal with merchandise exports of USD 340-350 billion with the timely and much needed support of the government.