Saraf sees benefits from the gradual opening of global markets
Exports continue to perform impressively for third month in a row on back of good order booking and gradual opening of key global markets, FIEO President Sharad Kumar Saraf said in comments on trade data for May 2021.
“The continuing impressive growth in exports reiterate our assessment that order booking position of our exporters is not only extremely good but also the gradual opening up of major global markets and improvement of situation in the country is expected to push exports growth further,” he said in a release on 2 June 2021.
He pointed out that growing by about 8% even on the base of May 2019 reflects a positive trend for the sector.
Saraf particularly emphasised that the growth in labour-intensive sectors like Cereal preparations and miscellaneous processed item, Gems & Jewellery, Engineering goods, Cotton yarn, fabrics, made-ups, handloom products, Marine products, Spices, Carpets and Man-made yarn, fabrics, made-ups among others augurs well for the job scenario, which is most relevant in the current context.
FIEO Chief added that such a growth during the month has been mainly on account of growth in Petroleum products, Engineering goods and Gems & Jewellery, the major contributors to the country’s export basket, which have shown impressive performance compared to May, 2020.
He also said that 19 out of 30 major product groups of exports have either shown a very impressive high positive growth starting with 3-digit defying all the odds when there is still a bit of scepticism persisting in the global economy on the expectation of a third wave of Covid-19 pandemic.
Saraf further reiterated that continuing on with such a growth performance in exports during the second month of the new financial year not only shows signs of resilience of the exporting community facing squeezing profits but also the resolve of the government.
He complimented the government for its continuous support during such challenging times.
Increase in May 2021 imports by about 68.54% to US$38.53 billion compared to the same period during the previous fiscal led to the increase in trade deficit of US$6.32 billion, which is an increase of over 74.69% during the month and should be looked into.
He reiterated that though the government has announced a slew of measures to support exports, the need of the hour is to soon notify the RoDTEP rates to remove uncertainty from the minds of the trade and industry thereby helping in further forging new contracts with the foreigner buyers.
Saraf also reiterated that the government must address some of the key issues including priority status to exports sector, extension of Interest Equalisation Scheme beyond June 2021 till at least 31 March 2024, release of the necessary funds for MEIS and clarity on SEIS benefits, resolving risky exporters’ issues and continuance of seamless refund of IGST and more importantly continuing with IGST option for exports. #exports #economy #manufacturing /fiinews.com
