Consistent less than 3% world trade growth could act as dampener to export sentiment: FIEO

New Delhi/Ludhiana, April 8, 2016: FIEO President Mr S C Ralhan while commenting on World Trade Organization's world trade forecast said that the lowering of the trade growth to 2.8 per cent for 2016 stated that for a third year in a row world trade has grown at below 3%. Earlier forecasts of 5.1% and 3.6% have further downsized to lower levels reflecting that there has been a paradigm shift whereby over the course of last century, global trade was growing faster than global GDP however post 2008 this ratio/trend has reversed which is corroborated by data from other international agencies indicating trade figures for the G-7 group of countries to fall by 7.1 per cent while trade figures for major emerging economies including Brazil, China, India, Indonesia, Russia, and South Africa slumped by 9.5 per cent. Going by this rate, doubling of goods and services exports to $900 billion in the next four years, and grabbing a 5 per cent share of global trade by 2020 (up from 1.6 per cent global exports share at present) may be difficult observed Mr Ralhan.

FIEO chief stated that financial benefits in the form of Investment linked benefit for MSME Exporters; Line of Credit or Buyers Credit to boost exports; Export Development Fund and changes in MAI Scheme to support marketing besides an advance ruling facility by the DGFT as is done for customs may be considered in the right earnest. Besides an infrastructural focus on 12 Towns of Excellence, as per nomenclature of FTP, contributing to 50% of the exports from country may also be focused upon. Expeditious refund of taxes and quick decision on pending issues related to exports may also be considered added President, FIEO.