However, FIEO analysis of trade data In a press release, FIEO points out some concerns and very positive new scenarios based on UN Comtrade figures for the last five years, 2016-2020.
From 2016 to 2020, world imports grew at a compound annual growth rate (CAGR) of 3%, while India’s exports grew only 2%. However, India’s exports were hit hard by the blockade in the last few months, lowering its CAGR over the last five years, and said that the same explanation applies to global imports in 2020 to some extent.
According to FIEO, many labor-intensive sectors that contribute significantly to India’s exports are constantly losing their share of the global market. For example, between 2016 and 2020, global textile imports were flat, while Indian textile exports shrank at a CAGR of 8% over the same period. In knitwear, global imports remained stagnant, but India’s knitwear exports shrank by 6% between 2016 and 2020.
In the leather shoes sector, where global imports grew at a CAGR of 1% between 2016 and 2020, India’s exports shrank only at a CAGR of 7%. Similarly, in other leather goods sectors, including saddleries, leather bags, handbags, belts, etc., global imports were flat, but India’s exports of such products shrank at a CAGR of 4%.
According to FIEO, some sectors have been very strong over the last five years and are on a growth track, but they have great potential to further boost exports.
Despite lower interest rates, credit costs to Indian exporters are much higher than their competitors. The Interest Equalization Scheme (IES), valid until 30 June, provides competitive credit to micro, small and medium-sized enterprise (MSME) manufacturers, and exporters of products covered by 416 specific tariff lines. As a result, FIEO has given the government a scheme on March 31, 2024.
Delays in the return of export-related benefits are putting further pressure on the liquidity of exporters.These include delays in notification of tariffs and tax exemption (RoDTEP) scheme rates on exported products, blocking of the Commodity Export Scheme (MEIS) portal from India from April to December last year, and service exports from the India scheme. Delayed Notification (SEIS) Exporter tax rates and capital blockades tagged as “dangerous”
India’s logistics costs are about 14% of GDP, 8% in the United States and 10% in European Union (EU) countries. To support export infrastructure, FIEO has proposed increasing the budget allocation of the Trade Infrastructure Export Scheme (TIES). The Commonwealth said the allocation for this plan from 2021 to 2010 was only Rs 7.5 billion.
Since the inception of the pandemic, pressures on India’s logistics infrastructure have included a shortage of containers, unavailability of vessels, and height of container cargo. Due to the supply-demand mismatch between containers, some stakeholders have put on hold regular bookings and assigned containers to those who are paying. Premium, FIEO said. Fares have skyrocketed compared to the pre-pandemic period.
The Commonwealth also remits about $ 65 billion annually for international shipping, but is still at the mercy of foreign shipping companies and needs a large shipping company. “If an Indian shipping company wins 25% of its business, there are over $ 25 billion in markets awaiting it,” he said.
Sakthivel also urged the government to fund the market access initiative from the current Rs 20 billion. Alternatively, he proposed a planned marketing plan with a minimum annual corpus of 1,000 chlores, with the goal of bringing exports to $ 1 trillion over the next five years.
Fiber2Fashion News Desk (DS)
A Sakthivel, chairman of the new federation of the Indian Exporters Association, said it will create a dedicated export promotion cell to identify new markets and products. The government’s $ 400 billion export target for this year is ambitious, but he said it is achievable, as the tremendous export growth seen from April to May will be the driving force.
New FIEO President to Create Dedicated Cell for Export Promotion
Source link New FIEO President to Create Dedicated Cell for Export Promotion