Since the nation’s export shipments have been declining for the past four months, the commerce ministry has convened a conference of exporters for Monday to assess the situation. Exporters are anticipated to raise concerns about things like providing more support for participation in international trade shows and exhibitions, moving forward with free trade agreements with the United Kingdom, Canada, Israel, and the GCC (Gulf Cooperation Council), and allowing industry double weighted deductions on pay.
According to data from the ministry, exports fell for the fourth consecutive month in May by 10.3% on a year-over-year basis to USD 34.98 billion, while the trade deficit increased to a five-month high of USD 22.12 billion.
In total, exports fell by 11.41 percent to USD 69.72 billion in April-May of this fiscal year, while imports fell by 10.24 percent to USD 107 billion.
The country’s exports are being impacted by the slowdown in demand in important markets, increasing inflation in developed economies, and the war in Russia and Ukraine.
The chairman of the Apparel Export Promotion Council (AEPC), Naren Goenka, stated that the government should take more export-boosting measures, such as supporting participation in international trade shows.
RoDTEP (Remission of Duties and Taxes) is a programme that the FIEO Director General, Ajay Sahai, said.
Sanjay Budhia, Chairman of the CII National Committee on EXIM and MD of the PATTON Group, responded that a systematic strategy is needed to boost exports given the trends towards a global recession.
“Resolving the specific issues faced by exporters, especially those related to non-tariff barriers impacting supplies to crucial markets, should be the primary focus,” said Budhia, who also noted that “geopolitical strains, the rapid adoption of e-commerce, and the Covid-19 pandemic have led to a rethinking of strategies for sourcing, diversification of supply routes, and manufacturing.”
He continued by saying that encouraging technological advancement and innovation in production methods will also assist to raise the quality and competitiveness of Indian products, which will increase exports.
Additionally, Budhia stated that efforts should be made to improve personnel capacities, particularly in fields with the potential for exports.
