Country's merchandise exports decline by 4.85% year-on-year to USD 32.11 billion, on the back of continuing global economic uncertainties and export promotion support: FIEO President
FIEO President, Mr Ashwani Kumar
Responding to November, 2024 merchandise exports of USD 32.11 billion, which declined by 4.85%, FIEO President, Mr Ashwani Kumar said that such a dip in exports is mainly on the back of continuing global economic uncertainties. Mr Kumar further added that the ongoing international trade disruptions along with the volatility in crude and metal prices have also played a key role in the declining value of exports to some extent. The rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and Gulf region are happening through the Red Sea route or the gulf region prompting buyers to have little large inventories. The FIEO President also said that the challenges with regard to trade finance still remain the key for the MSMEs as it is really impacting the competitiveness of Indian products in the global markets.
FIEO Chief said that imports increased by 27% to $69.95 billion in November compared to $55.06 billion in the year-ago month, mainly on account of gold imports in November, which reached an all-time high of $14.8 billion, thereby resulting in a trade deficit of $37.84 billion during the month.
FIEO President further reiterated that the urgent and immediate need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for at least 5 years, creating a predictable business environment for the exporters. The imposition of a cap of Rs 50 lakh per company in the Interest Equalisation Scheme has hit many MSMEs and they are unable to decide on order with non-availability of further subvention. Mr Ashwani Kumar demanded immediate restoration of the Interest Equalisation Scheme with a cap of Rs 10 Crore for all MSMEs and 410 tariff lines for a period of 5 years. Besides, the Government should also extend the RoDTEP benefits to all sectors of exports. Conclusion of some of the key FTAs including UK, Peru, Oman and Sri Lanka should also soon see the light of the day, which FIEO has been urging to the government for quite some time now, added Mr Kumar.
