June exports have shown double digit positive growth, though the growth receded: FIEO

Ludhiana, July 13, 2018: FIEO President, Mr Ganesh Kumar Gupta, responding to June, 2018 trade data, said that the exports data for the second month in a row for the fiscal have shown double digit positive growth though the growth have receded during the month. MSME units particularly labour-intensive sectors such as RMG of all textiles, agri products, jute manufacturing including floor covering, leather & leather products and gems & jewellery are still showing modest growth or are into negative territory. Though some of the labour-intensive sectors including carpets, handicrafts, cotton yarn/fabs/made-ups etc. have improved but a lot may only be said about their growth trend looking at their future growth trends and condition of the global market. These MSME sectors of exports are still feeling the pinch of liquidity crunch as banks and lending agencies have continuously been tightening their lending norms. FIEO Chief, Mr Ganesh Kumar Gupta, however said that yet again cushioning has been provided by the petroleum sector to exports, as it not only outperformed all other sectors of exports but has also helped the exports sector to continue on its double digit growth trajectory. FIEO President again reiterated his concern on the rising trade deficit, primarily on account of swelling of crude imports bill due to rising global oil prices, which have further added to inflationary conditions and the current account deficit thereby adding to the woes of the government on the fiscal deficit front. 22 out of 30 major product groups were in positive territory during May, 2018. Besides petroleum, engineering, organic & inorganic chemicals, drugs & pharmaceuticals, engineering goods, cotton yarn/fabs/made-ups, electronic goods and plastic & linoleum etc. have also shown positive exports growth during the month. Mr Gupta said that on domestic front, key issues like access and cost of credit especially for MSMEs should be looked immediately as global challenges and increasing protectionism, have already added to the problems of the exporters. FIEO also urges the government to soon come out with WTO compliant export strategy to give a boost to country’s exports sector.