Modest decline in Exports points to positive growth from October onwards: FIEO

New Delhi, September 15, 2016: Reacting to the trade data for the month of August, 2016 which showed a very modest decline of 0.3%, Mr S C Ralhan, President, FIEO said that the decline in exports has largely been arrested and we can look for positive growth after a month or so helping us to reach around USD 280 billion of exports in 2016-17.

14 out of the 30 major commodities have reported positive growth in exports including gems & jewellery, engineering, drugs & pharmaceuticals, garments, handicrafts, electronic goods, marine & meat products to name a few. These are high employment intensive sectors and their growth on sustainable basis will help in creating new job opportunities. President, FIEO admitted that global trade is passing through a difficult time but has certainly improved from 2015 level except for economic indicators from some of the advanced and emerging economies.

Mr S C Ralhan said that Rupee should be allowed to move freely as per market forces so that Indian exporters can compete effectively with those countries whose currencies have depreciated significantly in last one year or so. FIEO Chief, however, reiterated that Rupee depreciation is one of the important factors in pushing exports but not the sole factor. Other issues such as high logistics cost, high cost of credit and high transaction cost also needs to be addressed besides, little support from global economy to push Indian exports.