exports have shown double digit growth exports for the third consecutive month.
However, the growth continues to recede, pointed FIEO president Ganesh Kumar
Gupta, while responding to the July, 2018 trade data.
particularly labour-intensive sectors such as marine products, RMG of all
textiles, cotton yarn/ fabs/ made-ups, agri products, leather & leather
products and handicrafts are into negative territory. Some labour-intensive
sectors including gems and jewellery, carpets and jute manufacturing including
floor covering etc. though have shown impressive growth or have improved. The
main reason behind the impressive growth shown by gems and jewellery exports
has been the increased import of gold and pearls, precious and semi-precious
of exports are still reeling under pressure because of the liquidity crunch as
banks and financial institutions have continuously been tightening their
lending norms and ITC refund for exports still poses a challenge, said Gupta.
He added that
significant contribution in the growth was made by petroleum, gems and
jewellery and engineering sector of exports, as they not only outperformed all
other sectors of exports but have also helped the exports sector to continue on
its double digit growth trajectory in these difficult times.
21 out of
30 major product groups were in positive territory during July, 2018. Besides
petroleum, gems & jewellery, and engineering goods, organic & inorganic
chemicals, electronic goods, plastic & linoleum and drugs &
pharmaceuticals etc. have also shown positive exports growth during the month.
president reiterated his concern on the rising trade deficit, primarily on
account of swelling of crude imports bill due to rising global oil prices,
which have further added to inflationary conditions and the current account
deficit thereby adding to the woes of the government on the fiscal deficit
front. This is also adding pressure on Indian Rupee coupled with huge
withdrawal by FIIs from the Indian debt & equity market.
that on domestic front, key issues like depreciating rupee, access & cost
of credit especially for MSMEs should be looked immediately as global
challenges and increasing protectionism, have already added to the problems of
the exporters. FIEO also urges the government to soon come out with WTO
compliant export strategy to give a boost to country’s exports sector.
depreciation would definitely provide some edge to Indian exports as rupee is
the worst performing currency in Asia in the current fiscal, yet its impact
will vary from sector to sector. However, the textile industry may be at a
disadvantage with sharp depreciation in Turkish Lira as Turkey is one of the
competitors. Same is true for commodities as Argentinian and Brazilian
currencies have depreciated at a steeper pace, added FIEO chief.