The exports data in December have shown a marginal growth due to uncertain global cues and challenges on the domestic front.
China’s exports contracted in December 2018 highlighting fragile global conditions. However, exports during the month was close to USD 28 billion with a growth of just 0.34 per cent, even when the weakening global economic outlook are showing no signs of respite said the president of Federation of India Export Organization (FIEO) Ganesh Kumar Gupta.
But during the month, the sectors which were showing high growth in the previous months are now witnessing nominal growth or marginal growth such as the Petroleum sector, Organic Inorganic Chemicals, Plastic and Linoleum, Electronic goods and RMG of all textiles.
All major labour-intensive sectors of exports like Gems and Jewellery, Engineering, Leather and Leather products, Man-made yarns, made-ups, Handloom products, commodities including most Agriculture products are now in negative territory. Seventeen out of 30 major product groups were negative territory during December, 2018 the president of Federation of India Export Organization (FIEO) Ganesh Kumar Gupta said.
However on the imports front, the growth in December, 2018 was on negative side with -2.44 percent mainly due to reduction in gold and pearls, precious and semi-precious stones import. Spin-off effect due to global trade war has also impacted the country’s trade impacting both imports and exports.
FIEO Chief once again reiterated his demand for urgent and immediate support including augmenting the flow of credit and better fiscal support. President FIEO exuded confidence that despite current growth trends the exporters will manage to do well ending the fiscal with merchandise exports of USD 340-350 billion with the timely and much-needed support of the government.
Very nice analysis sir