Increase in merchandise exports despite logistics challenges shows resilience of the sector: FIEO President
Reacting to the exports figures of June 2024, FIEO President, Mr Ashwani Kumar, said that the third consecutive increase in merchandise exports, by 2.55 per cent to USD 35.2 billion, shows the resilience of the sector. He added that had it not been for the logistics disruptions such as lack of container availability, shipping space, irregular shipping schedules and ships skipping Indian ports, exports would have recorded close to double-digit growth in June.
He emphasised that the continuous hard work put in by the exporting community is paying dividends though there is also slowdown in demand in several key markets, reflected in the sluggish growth projections. He, however, expressed optimism of better growth numbers, with improved demand coming in from the European Union, the UK, West Asia and the US in months to come, which will not only further boost the overall order bookings but also specifically the labour-intensive sectors of exports.
India’s exports to eight of its top ten markets including the US, the UAE, Netherlands, the UK, Saudi Arabia, Bangladesh, Germany and Malaysia were positive, with minor declines to China and Singapore. Many of them recorded healthy double-digit growth, Mr Kumar highlighted.
He reiterated that the need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for 5 years. Besides, in order to address the Middle East geopolitical situation and Red Sea challenges, the availability of containers, marine insurance and rational increase in freight charges should be ensured. The sector also needs easy and low cost of credit, marketing support, and conclusion of some of the key FTAs with UK, Peru and Oman soon, he said.
Source: Exim News Service: New Delhi, July 18