Categories: Economy

Indian exports may see 10% decline, exporters must focus on countries with anti-China sentiments to boost demand: FIEO

Exports in the current financial year are likely to decline 10 per cent as global demand dropped due to the Coronavirus pandemic, the Federation of Indian Export Organisations (FIEO) said. The apex organisation said that India must focus on countries including the US and UK among others, which have provided huge stimulus to boost demand. The organisation also noted that India must look at countries which are currently uncomfortable in dealing with China as its potential export destination.

FIEP warned that in case of a second wave, the decline could be 20 per cent.

The apex body added many Indian exporters have received enquiries from countries “where anti-China sentiments are high”. It said that many of these enquiries have been converted into orders.

FIEO also noted that demand in employment intensive sectors like gems and jewellery, apparels, footwear, handicrafts, carpets continue to pose challenges. “We do not expect much improvement in demand. Therefore, we expect around 10 per cent decline in India's exports in the current fiscal,” it said.

Export recovery is likely to be led by sectors such as pharmaceuticals, medical and diagnostic equipment, technical textiles, agriculture and processed foods, plastics, chemicals and electronics, it said.

Seeking support from the government, the FIEO added that the going has become tough especially for exporters after the outbreak of the pandemic as they have lost huge orders due to prolonged lockdown leading to substantial financial losses. Besides, inadequate working capital has also turned into a challenge for exporters.

In a statement, FIEO noted that India has not been able to gain through the free trade agreements (FTAs). “We should focus on FTAs with our major export destinations like the US and European Union (EU).

FIEO also pointed out that the government’s focus on imports substitution should become integral part of the foreign trade policy “as dollar saved is as good as dollar earned and both generate economic activity.”

“While an increase in tariff can be one way to achieve it, the more effective strategy would be to provide an ecosystem which addresses the cost disability of Indian manufacturing leading to such imports,” the statement said, adding that import substitution manufacturing should attract interest subvention on credit, offsetting inland freight disadvantage besides equalization of import tariff from free trade areas..

indianarrative

Recent Posts

EAM Jaishankar honoured with Sri Chandrasekarendra Saraswathi National Eminence Award for public leadership

External Affairs Minister S Jaishankar was awarded the Sri Chandrasekarendra Saraswathi National Eminence Award for…

16 hours ago

PM Modi interacts with Indian workers at Gulf Spic Labour Camp in Kuwait

Prime Minister Narendra Modi on Saturday visited the Gulf Spic Labour Camp in Kuwait, where…

17 hours ago

INS Tushil makes first port call to London on maiden deployment

INS Tushil made its first port call to London as a part of its maiden…

17 hours ago

Kuwait: PM Modi receives grand welcome from Indian diaspora; watches cultural performance, meets 101-year-old ex-IFS officer

Prime Minister Narendra Modi, arrived in Kuwait with a rousing welcome, as members of the…

2 days ago

PM Modi arrives in Kuwait, says visit will strengthen bilateral friendship across various sectors

Prime Minister Narendra Modi arrived in Kuwait to a warm welcome on Saturday. He is…

2 days ago

ISRO- European Space Agency sign agreement for advancing human spaceflight

The Indian Space Research Organisation (ISRO) and the European Space Agency (ESA) have signed an…

2 days ago