Due to the COVID-19 pandemic, the country’s exports are likely to witness a 10-12 per cent year-on-year decline during the constant fiscal, if the current trend persists, due to the contraction in global demand. In this article, we will discuss the notification regarding the exports likely to dip 10-12 per cent in 2020-21:FIEO.
Exports likely to dip 10-12 per cent in 2020-21
Federation of Indian Export Organisations (FIEO) President S K Saraf stated that exporters are obtaining a lot of enquiries from countries where anti-China sentiments are high, need in employment-intensive sectors like gems and jewellery, apparels, footwear, handicrafts, and carpets is still a challenge.
Initially, looking into the worldwide lockdown challenges and projected decline in global trade, we anticipated 20 per cent decline in our exports. However, the WTO trade estimates for the second quarter puts the constriction only at 13 per cent,” Saraf notified reporters during a meeting.
However, in case of a next wave of the pandemic, the contraction in exports may attain 20 per cent, Saraf said. India’s exports contracted by a record 60 per cent in April and 36.47 per cent in May.
Further Recommendation to Government
FIEO suggested the government to concentrate on concluding free trade agreements with countries like the European Union, Australia and New Zealand.
The government should also look at directions to re-start talks on mega exchange deal Regional Comprehensive Partnership Agreement). It is an adequate time to involve in RCEP with fully protecting the national interests,” FIEO Officials.
Also, the export community to focus on countries which are procuring need stimulus like the US and the UK, and explore recourses in countries having anti-China beliefs like the EU, Japan, South Korea, Australia, New Zealand, and Canada.
FIEO has suggested the government to boost incentive rates under the Merchandise Exports from India Scheme (MEIS) till the time Remission of Duties or Taxes on Export Product (RoTDEP) scheme kicks in.
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