FIEO Prez sees revival in order book positions
China is paying hefty premiums to shipping lines to bring back empty containers for its rising exports, which has impacted goods shipment from India, resulting in a marginal 0.25% export decline in February, FIEO President Sharad Kumar Saraf said on 2 Mar 2021.
However, “we continue to see signs of further revival not only in the order booking positions but also in the demand from across the globe, paving way for much better days and months for the sector,” said Saraf in comments on the February export numbers released by the Government.
The monthly exports declined marginally by 0.25% to US$27.67 billion mainly on account of container shortages across the country and limited supply disruptions in the last week of the month due to increasing Covid cases in certain states, he noted.
Overall, all major export sectors maintained positive growth trend during February, continuing from the previous month.
Exports of other cereals along with oil meals, iron-ore, jute mfg. including floor covering, rice, cereal preparations and miscellaneous processed items, meat, dairy and poultry products, carpet, spices, drugs and pharmaceuticals, handicrafts excl. hand-made carpet, ceramic products and glassware, cotton yarn/fabrics/made-ups, handloom products etc., tobacco, plastic and linoleum, mica, coal and other ores, minerals including process and organic and inorganic chemicals showed either a very high or impressive growth or were in positive territory showing signs of further improvement, said FIEO in a release.
But the key concern was related to labour-intensive export sectors. Major export products with negative growth included petroleum products, oil seeds, leather and leather manufactures, cashew, gems and jewellery, RMG of all textiles, electronic goods, fruits and vegetables, man-made yarn/fabrics/made-ups etc, engineering goods, tea, coffee and marine products.
Further, February 2021 imports increased by about 7% to US$40.55 billion compared to the same period during the previous fiscal led to a trade deficit of US$12.88 billion, an increase of 25.84% during the month.
The FIEO President also urged the government to soon notify the Remission of Duties and Taxes on Export Products (RoDTEP) rates to remove uncertainty from the minds of the trade and industry thereby forging new contracts with the foreigner buyers.
He also reiterated that the government must address some of the key issues including timely announcement of the new FTP, adequate availability of containers, release of the required funds for RoDTEP, MEIS and clarity on SEIS benefits, softening of freight charges, resolving risky exporters’ issues and continuance of seamless refund of IGST.
Besides long pending demand for the creation of an Export Development Fund for marketing of Brand India products and various other infrastructure bottlenecks also needs to be looked into to bring back exports on the double-digit growth trajectory, he said. #exports #shipment #taxes #financing #banking #manufacturing /fiinews.com
