Exports recorded moderate growth of 3.93 percent: FIEO president Ganesh Kumar Gupta

June 17, 2019: Federation of Indian Export Organisations (FIEO) has said that MSME sectors are facing the problem of liquidity besides various other challenges including uncertainties owing to tariff war, volatility in commodities/currencies, rapid rise in trade restrictive measures and constraints on the domestic front.

Growth of export has been moderate at 3.93 percent during May 2019. FIEO president Ganesh Kumar Gupta said that the number is a reflection of extremely modest growth in global trade and increasing protectionism.

Gupta said that the US-China trade war and developments in Iran have further aggravated the problem in the world economy. The uncertainty attached to it will also affect the flow of investment and add to currency volatility.

Electronic goods, organic and inorganic chemicals, drugs and pharma, RMG of all textiles, plastics and Linoleum, ceramic products & glassware, handicrafts, commodities besides a few plantation and agri products were among the 17 out of 30 product groups that remained in positive territory during May 2019.

Gupta said that domestic issues including access to credit, cost of credit especially for merchant exporters, interest equalisation support to all agri exports, benefits on sales to foreign tourists and exemption from IGST under Advance Authorization Scheme with retrospective effect should be seriously looked into. Besides these, budgetary support for marketing and exports related infrastructure are some of the other key issues, which needs immediate attention of the government in the upcoming budget.