Growth in overall exports despite persistent global challenges shows resilience of the exports sector: FIEO President
Reacting to the overall export figure for FY 2023-24 of US$ 776.68 bn, which surpassed FY 2022-23’s US$ 776.40 bn, Mr Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO), said that it goes to show not only the firm resolve of the “resilient, gritty and vibrant” exports sector but also of the overall exporting community. Goods exports was the highest during any month of FY 2023-24 in March 2024, touching US$ 41.68 bn while imports were at US$ 57.28 bn, showing a merchandise trade gap of US$ 15.6 bn, said a release.
Mr Kumar emphasised that such an impressive increase in overall exports growth, despite the geopolitical tensions especially the Russia Ukraine war, Red Sea crisis, tight monetary stance by the developed world and falling commodity prices, shows the full dedication and commitment of the sector, which has continuously been braving such odds post Covid. Exporters have consistently been performing, driving the growth of exports, and also adding to the growth momentum of the economy.
He pointed out that the major growth drivers of merchandise exports during 2023-24 were electronic goods, drugs & pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs./made-ups, handloom products etc., as well as ceramic products & glassware, which is a good sign as most of these sectors are labour-intensive and boost employment creation.
Mr Kumar reiterated that the recent tensions in West Asia, especially the threat to consignments routing through the Red Sea, has added to the woes of the exporting community as freight rates and insurance costs have become unimaginably high, along with the burden of various surcharges. He added that much will depend on the new contracts to be signed with buyers during the current fiscal, as exporters have been absorbing the burden of increased freight costs as per the old agreements.
The FIEO President stressed again that the need of the hour is to address the Middle East geopolitical situation and Red Sea crisis challenges by ensuring availability of marine insurance and rationale increase in freight charges. The sector also needs easy & low cost of credit, marketing support, besides conclusion of some key FTAs with UK, Peru and Oman soon, the release added.
source: Exim News Service: New Delhi, April 22