India’s exports likely to reach $350 billion this fiscal: FIEO

Source: The Hitavada      Date: 30 May 2018 12:28:56




INDIA’S exports are expected to record a growth of about 15-20 per cent and touch USD 350 billion in the current fiscal on account of a host of factors including rise in commodity prices, exporters body FIEO said on Tuesday. Federation of Indian Export Organisations (FIEO) President, Ganesh Gupta said despite increasing global protectionism, the country’s exports would continue to register healthy growth rates.“Growth is looking promising this fiscal. Indian exports, which are hovering at around USD 300 billion, should show 15-20 per cent growth so as to reach USD 350 billion in this fiscal,” he told reporters here. He said that the northward movement in petroleum and commodity prices and the recent depreciation of Indian rupee were supporting exports.

He also urged the Government to provide fiscal and non-fiscal incentives to boost the shipments in both advanced and emerging markets. Gupta also said that although exports had recorded growth in 2017-18, labour-intensive sectors such as carpet and handicrafts had definitely dented the job creation opportunities.“On a rough estimate, over USD 1 million exports create 100 jobs. Therefore, additional exports of USD 27 billion in 2017-18 should have created 2.7 million jobs in exports,” he added. In 2017-18, exports stood at about USD 303 billion. Talking about the issues being faced by exporters at insurance front, Gupta said that the Export Credit Guarantee Corporation of India (ECGC) delayed the process of claims, which impacted exporters.

“ECGC is creating problems for exporters. They try to find how to reject the claims of exporters. We have raised the issue with the Commerce Ministry,” he added.Further, Gupta expressed hope that the Government would pro-actively engage with trading partners particularly with the US so that the trade interest of the country was safeguarded.Commenting on the US decision to impose economic sanctions on Iran, Gupta said that it would create an opportunity for domestic exporters to increase their shipments to that country.He said that when the sanctions were imposed during 2013-14, the country’s exports to Iran increased to USD 5 billion and it was only USD 2.56 billion last year.

“The crucial issue is that what kind of sanctions are being imposed by the US. This time Europe is not there. If sanctions will be imposed on the financial system, it may create a challenge for us but otherwise it will help boost rupee exports to Iran,” he said. In such a situation, Indian banks should help exporters by providing affordable credit.
“I do not feel that India’s exports will be impacted due to the US sanctions,” he said.