to December, 2022 Trade Data, FIEO President, Dr A Sakthivel said that
merchandise exports in negative territory is on expected lines as the
challenges continue due to recession like situation, slowdown and rising
inflation in most economies across the globe
Decline in merchandise exports is a
reflection of the toughening global trade conditions on account of high inventories,
economies entering recession, high volatility in currencies and geopolitical
tensions. The drop in commodity prices and restriction on some exports, with a
view to stem the price increase in the domestic market, have also affected the
capital from the market has also impacted the growth process.
FIEO President is of the view that the coming
months would be quite challenging unless both global economic growth and geopolitical
situation improves drastically. However,
decrease in imports is a good sign, which will put less burden on trade deficit
front. We hope that the energy prices will come down further to provide
more relief, opined FIEO Chief.
Sakthivel added that in the current situation, the focus should be on providing
easy liquidity at competitive cost, extension of ECLGS for one more year till
31.3.2024 by suitably enhancing the moratorium period, restoration of the
Interest Equalization support to 5% and 3% respectively, IGST exemption on
freight on exports, which lapsed on 30th September, extension of tenure of PCFC
from 180 days to 365 days and notification of RoDTEP rates for the holders of
Advance Authorization, DFIA and EOU units.
the Federation is also of the view that the new TMA scheme for agri exporters
and announcement on allocation of export development fund with a corpus of Rs
5000 Cr for aggressive overseas marketing by MSME to showcase Indian products
globally in the upcoming budget is the need of the hour.
He stressed on the need to support exports at
the district level with sizeable budgetary support for the District as an
Export Hub scheme to bridge the supply side gaps.