September exports grow by 5.27 to USD 27.40 billion for first time during fiscal: FIEO President

Reacting to September 2020 export figures, FIEO President, Mr Sharad Kumar Saraf said that the monthly exports have grown by 5.27 to USD 27.40 billion first time during the financial year 2020-21 showing signs of revival as gradual lifting of lockdown have further improved the business sentiments. Anti-China sentiments across the globe has also been one of the reasons for the improved performance in exports. Besides, the exporters must be complimented for their excellent performance in spite of these challenging times. Mr Saraf reiterated that the arrest in decline of exports started during July with a lower negative double digit decline of 10.21 percent from a very high negative double digit decline of 60.28 percent during April, 2020 caused mainly due to lockdown measures followed across the globe because of Covid-19 pandemic. 
 
As business activities and economic sentiments are inching towards normalcy globally, Mr Sharad Kumar Saraf added that exporters have started receiving a lot of enquiries and orders from across the globe helping many sectors to further show improved export performance, which is likely to get better and better in next few months. FIEO Chief, further added that integration in the global supply chain has also started showing signs of resilience further helping to give a boost to the Indian economy. 
 
FIEO President said that the exports of agri products, plantation & other cereals along with iron ore, carpet, ceramic products & glassware, drugs & pharmaceuticals, handicrafts excluding handmade carpet, meat, dairy & poultry products, jute mfg. including floor covering, cotton yarn/fabs/madeups, handloom products etc., RMG of all textiles, plastic & linoleum, petroleum products, engineering goods, organic & inorganic chemicals and electronic goods showed either a very high or impressive growth or were in positive territory showing signs of further revival. However, reduction in imports during September 2020 by 19.60 percent to USD 30.31 billion compared to the same period during the previous fiscal led to a trade deficit of just USD 2.91 billion with a substantial decline of 75.06 percent during the month. Reduction in import of precious metals including Gold and Silver along with leather & leather products used as raw material for gems & jewellery and leather & leather product exports has also seen a negative growth during the month which does not augur well for these major labour-intensive sectors of exports.   
 
With the WTO trade estimates for the second quarter putting the contraction only at 13 percent and the country’s exports showing signs of revival, Mr Sharad Kumar Saraf is of the view that going with this trend, India’s exports is likely to be in the range of USD 290-300 billion during the current fiscal. Which itself would be an impressive performance from the overall exporting community and for the sector as a whole who are facing such tough global conditions.
 
FIEO Chief reiterated that the urgent and immediate need of the hour is to address some of the key issues including the release of the MEIS benefits, resolving risky exporters issues, early introduction of RoDTEP across all sectors, capping of Rs 2 crore MEIS per IEC, introduction of NIRVIK Scheme and expediting introduction of the E-Wallet Scheme, which will further help in reviving the exports during these difficult and torrid times.