Robust double digit growth in exports shows capabilities and robustness of our export sector: FIEO

Ludhiana/New Delhi, March 15, 2017: Reacting to the robust double digit export growth of well over 17% for the month of February, 2017, Mr S C Ralhan, President, FIEO said that while continuous positive growth in exports for last 6 months is not only a positive and encouraging sign for us but it also signifies the commitment of the exporting community of delivering during such challenging and slowdown situation in the global trade which hitherto has been affecting exports of all major economies including China. The current double digit growth in exports has come after a long way after June, 2014, which itself shows the capabilities and robustness of our export sector.

FIEO Chief further added that the growth across sectors in 23 out of 30 major product groups, have not only been positive in February but sectors specially Iron ore have continued to show an overwhelming growth of well over 1100 percent. Other major sectors like Engineering goods, Gems & Jewellery, Drugs & Pharmaceuticals, Organic & Inorganic Chemicals, RMG of textiles, Oil Meals, Oil seeds, Coffee, Marine Products, Cashew, Meat, dairy& poultry products including carpet and Man-made Yarns & made-ups have also shown impressive growth contributing in a major way to the growth in exports during the month with most of them showing higher double digit growth for the first time in recent months. Mr Ralhan reiterated that Petroleum exports which has a major contribution in the exports basket has contributed to the robust growth with more than impressive growth of well over 27 percent. Going by the current trend, we are definitely expected to reach around USD 270 billion of exports this fiscal.

FIEO Chief also welcomed the Ministry of Commerce and Industry’s initiative of launching the much awaited new scheme called the Trade Infrastructure for Export Scheme (TIES). The new scheme ‘TIES’, will help create modern infrastructure like last mile connectivity to ports, besides testing labs and certification centers. The Scheme will also help in modernising infrastructure in states for exporters besides addressing various other challenges and export bottlenecks thereby helping in reduction of overall transaction and logistics costs.

Mr Ralhan further added that with overall uncertainty still looming around the globe, the need of the hour is to further diversify the product basket with more focus on high-tech products where India’s share in global trade is very low. He also said that as GST is around the corner, liquidity would be the key challenge for the exporters to compete in the international market.