FIEO reacts to sliding merchandise exports growth during June, 2019

Decline in exports reflects worsening global economic conditions: FIEO

Ludhiana, July 16, 2019: Reacting to the sliding merchandise exports growth during June, 2019, FIEO president, Sharad Kumar Saraf said that such a de-growth in exports is a reflection of sluggish global demand and rising tariff war.

The high exports base of June 2018 contributed in no less measure. The softening of crude and steel prices also pulled down exports, he said.

Further, FIEO president said that due to US-China Trade war and developments in Iran further aggravated the problem of the world economy. The uncertainty attached to it will also affect the flow of investment and add to currency volatility.

“Only 9 out of 30 major product groups were in positive territory during June 2019 including some plantation and agri sector, iron ore, ceramic products and glassware, drugs & pharma, electronic goods and jute manufacturing including floor covering”, he said, adding that rest all major sector of exports including almost all labour-intensive sector exports besides petroleum for first time in recent times were in the negative with such a decelerating trend.

Saraf said that domestic issues including access to credit, cost of credit especially for merchant exporters, interest equalization support to all agri exports, benefits on sales to foreign tourists and quick refund of GST should be seriously looked into.