Downward trend in labour-intensive sectors of exports not good for the economy says: FIEO

Downward trend in labour-intensive sectors of exports not good for the economy says: FIEO

Agency News

Hyderabad, May 15 : Reacting to the April, 2019 trade data, Federation of Indian Exports Organisation ( FIEO) President, Ganesh Kumar Gupta, said that the export data of USD 26.07 billion with a growth of 0.64 percent is not at all encouraging.
Almost all the labour-intensive sectors including leather products, gems & jewellery, engineering goods, cotton yarns/fabs/made-ups, man-made yarn/fabs/made-ups, carpets, marine products, few plantations and various other sector of exports dominated by MSMEs are into negative territory, he added.
These sectors are still facing the problem of liquidity besides various other challenges including global trade war, protectionism, fragile global conditions and constraints on the domestic front.
In a statement here on Wednesday, FIEO Chief said that there may be front loading of exports in the past as exporters were apprehensive of withdrawal of GSP in US and development in Iran.
Only 14 out of 30 major product groups were in positive territory during April 2019 such as petroleum, organic & inorganic chemicals, drugs & pharma, RMG of all textiles, electronic goods, ceramic products & glassware, handicrafts and other products.

Mr Gupta also opined that with rising trade tensions between US and China, the global trade scenario might further worsen, putting more pressure on Indian exports in months to come. The uncertainty attached to it would affect the flow of investment and add to currency volatility.
Mr Gupta 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 exemption from IGST under Advance Authorization Scheme with retrospective effect should be seriously looked into. Besides these, budgetary support for marketing and exports related infrastructure are some of the other key issues, which needs immediate attention of the government. (UNI)