Exports likely to touch $300 billion mark this fiscal but rising trade deficit takes sheen away: FIEO

January 16, 2018: Reacting to the trade data for the month of December, 2017, FIEO president Ganesh Kumar Gupta said that the positive growth for second month in a row, after a fall in October 2017, shows resilience of the Indian exporters. “Since we have already achieved exports worth $224 billion in first 9 months of the fiscal and global trade growth remains robust in 2018, we are on our course to achieve the milestone of $300 billion in 2017-18,” said Gupta. However, he added that the rising trade deficit is alarming and the import profile needs to be analysed carefully to see whether imports would augment domestic production or shall pose a challenge for the same. The rising import of gold and precious and semi-precious stones can help the exports of gems and jewellery sector in next few months.

Only 21 (as against 24 in Nov, 2017) out of 30 major product groups were in positive territory in December, 2017 including Engineering goods, Petroleum, Organic & Inorganic Chemicals, Gems & Jewellery, Drugs & Pharmaceuticals, Plantations, Marine exports and Plastics & Linoleum. While decline in exports of minerals is understandable, the similar trend for apparel is extremely disappointing as appreciation of Indian rupee would further blunt the competitive edge of the sector.

Gupta said that while IGST refund is settling down except for ICDs, exporters are having huge problem in getting refund of ITC both due to ignorance and recalcitrant approach of the tax authorities. FIEO president said that exporters should be given reasons for the delay and there should be close monitoring of GST refund for exports on day to day basis.