Country’s merchandise exports surge by 17.25% year-on-year to USD 39.2 billion, amidst continuing global economic uncertainties: Ashwani Kumar, President FIEO

Reacting to the October, 2024 merchandise exports of USD 39.2 billion, which surged impressively with a high double-digit growth of 17.25%, the highest in recent times, said FIEO President, Mr Ashwani Kumar. FIEO Chief added that such an impressive double-digit growth in merchandise exports, amidst continuing global economic uncertainties is definitely very encouraging sign of revival. Mr Kumar further added that the ongoing international trade disruptions along with the volatility in crude and metal prices have also played key role in increasing the value of exports to some extent. The rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and Gulf region are happening through the Red Sea route or the gulf region prompting buyers to have little large inventories. He also said that the continuous hard work put in by the exporting community have started showing the results, which may continue in similar fashion during the coming months. However, the challenges with regard to trade finance still remains the key for the MSMEs as it is really impacting the competitiveness of Indian products in the global markets.
 
FIEO President said that as imports increased by about 3.9% to USD 66.34 billion during October 2024 it resulted in the increase of trade deficit to USD 27.14 billion during the month, which needs to be looked into.
 
FIEO President, Ashwani Kumar further reiterated that the urgent and immediate need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for at least 5 years, creating a predictable business environment for the exporters. The imposition of cap of Rs 50 lakh per company in the Interest Equalisation Scheme has hit many MSMEs and they have lost order with non-availability of further subvention. 
President FIEO demanded immediate restoration of the Intertest Equalisation Scheme with a cap of Rs 10 Crore for all MSMEs and 410 tariff lines for a period of 5 years. Besides, Government should extend the RoDTEP benefits to all sector of exports as available during pre-Covid times.

Conclusion of some of the key FTAs including UK, Peru, Oman and Sri Lanka should also soon see the light of the day, which FIEO have been urging to the government for quite some time now, added Kumar.