On the back of buoyant order bookings, continued growth projection remains the key for the sector: FIEO President Ashwani Kumar
FinTech BizNews Service
Mumbai, June 14, 2024: Reacting to the May, 2024 merchandise export numbers, FIEO President, Mr Ashwani Kumar said that continuing with positive growth momentum for second month in a row during FY 2024-25 on the back of buoyant order bookings goes to show the resilience of the exports sector and Indian exporting community. Goods exports of US$ 38.13 billion with an impressive growth of 9% compared to May 2023 is not only a good sign but also goes to show efforts and hard work, which the exporters are putting together. The ongoing Russia-Ukraine war coupled with various major geo-political tensions including the Red Sea crisis and Israel-Hamas conflict has also made the international trade scenario much tougher for the Indian exporters, added Mr Kumar. We further expect exports to show better growth numbers with improved demand coming in from the European Union, UK, West Asia and the US, which has given boost to the order bookings by over 10 % and has come as sign of recovery for labour-intensive sectors of exports.
FIEO Chief said that key sectors which have shown positive growth during the month of May 2024, include electronic goods, drugs & pharmaceuticals, organic & inorganic chemicals, engineering goods, petroleum products, plastics & linoleum, cotton yarn/fabs./made-ups, handloom products etc., man-made yarn/fabs./made-ups, handloom products etc., cereal preparations & miscellaneous processed items, meat, dairy & poultry products, mica, coal & other ores, minerals including processed minerals, RMG of all textiles, tea, coffee, rice, tobacco, carpet and handicrafts, oil seeds and fruits & vegetables.
Our exports in all our top ten markets (US, UAE, Netherland, UK, China, Singapore, Saudi Arabia, Bangladesh, Germany and France) were positive and many of them recorded a healthy double-digit growth.
Month-on-month imports during May 2024 was US$ 61.91 billion with growth of 7.7 percent, increasing the trade deficit for the month to US$ 23.78 billion, which in itself is not a good sign for the economy, said Mr Ashwani Kumar. However, a negative trade balance is not always bad, if a country is importing raw materials or intermediary products to boost manufacturing and exports, added FIEO President.
Overall exports of (goods and services) increased to US$ 73.12 billion during April-May FY 2024-25 with a growth of 5.1 percent compared to April-May FY 2023-24. while overall imports saw an 8.89% increase to USD 116 billion. He also added that though there is increase in imports during April-May 2024 mainly due to petroleum products, gold, silver, electronic goods, pulses and vegetable oil but the increase in petroleum products, gold and silver imports will lead to increase in exports of petroleum products and gems & jewellery with a time lag.
FIEO President, Mr Ashwani Kumar further reiterated that the need of the hour is to take steps on the liquidity front with deeper interest subvention support and continuation of interest equalisation scheme. Besides, addressing the Middle East geopolitical situation, Red Sea crisis challenges by ensuring availability of marine insurance and rationale increase in freight charges. The sector also needs easy & low cost of credit, marketing support and conclusion of some of the key FTAs with UK, Peru and Oman soon.
