The monthly export figures for December 2020 have moved towards positive territory as major export products show signs of further revival on the expected lines said the Federation of Indian Exporters Organisation

Reacting to December 2020 Export figures, FIEO President, Mr Sharad Kumar Saraf said the marginal decline of just 0.14 percent with 27.15 billion US Dollars of exports showing signs of revival as order booking position have continuously improved besides more new orders in the offing.

Vaccines are expected to bring both life and economy back on growth trajectory says FIEO

He reiterated that the New Year 2021 has brought a ray of hope and optimism for all from the worst of Covid-19 and effective vaccines are expected to bring both life and economy back on growth trajectory with a v-shaped recovery in world trade. Arrival of vaccines has also helped in boosting the business sentiments for the sector as a whole, which can be further seen from the positive figures of the upcoming months said Mr Saraf.

Export products in positive territory

December exports also signals that our traditional and labour-intensive sectors of exports have passed the most challenging and testing times as both Christmas and New Year Season sales have shown positive trends with further improvement in coming months. Going ahead by this trend, we expect our inventories to be liquidated, adding further to the overall demand, observed Mr Saraf.

The exports of other cereals along with oil meals, iron-ore, cereal preparations and miscellaneous processed items, jute mfg. including floor covering, handicrafts excl. hand-made carpet, carpet, ceramic products and glassware, drugs and pharmaceuticals, spices, electronic goods, fruits and vegetables, organic and inorganic chemicals, cotton yarn/fabrics/made-ups, handloom products etc., rice, meat, dairy and poultry products, gems and jewellery, mica, coal and other ores, minerals including process, tea and engineering goods showed either a very high or impressive growth or were in positive territory showing signs of further revival. Exports of 20 out of the 30 major product categories were positive during the month. . 

The operationalization of the new RoDTEP effective from January 1, 2021 will remove uncertainty from the minds of the trade and industry and being WTO compatible, the same would provide complete rebating of Indian exports by refunding the taxes including embedded taxes, not rebated through any other mechanism. However notification of the rates is the need of the hour.

Saraf urged the government to address some of the key issues like adequate availability of containers

Mr Sharad Kumar Saraf urged the government to address some of the key issues including adequate availability of containers and various other infrastructure bottlenecks with regard to customs and port clearances, which will further help in giving boost to our exports not only in FY’ 2020-21 but also for the upcoming new fiscal.