Exports back on double digit growth trajectory due to festive season: FIEO
New Delhi, Nov 16 (KNN) Exports growth got back on double-digit growth trajectory due to the festive season, said Federation of Indian Export Organization (FIEO) reacting to October, 2018 exports figures.
India’s goods exports bounced back in October posting a 17.86 per cent year-on-year growth to USD 26.98 billion boosted by an increase in shipments of petroleum products, chemicals, pharmaceuticals and engineering goods.
Imports during the month grew 17.62 per cent to USD 44.11 billion widening the trade deficit to USD 17.13 billion compared to USD 14.61 billion last October, according to figures released by the Commerce Ministry on Thursday.
While import of crude and petroleum products jumped over 52 per cent to USD 14.20 billion during the month, import of gold declined 42.9 per cent to USD 1.68 billion.
In September, exports had fallen 2.15 per cent compared to last September, but in absolute terms the export value was higher at USD 27.95 billion.
FIEO President Ganesh Kumar Gupta said that October data shows that the exports are again back on double-digit growth trajectory during the on-going festive season.
He said “The exports during the month is close to USD 27 billion, which re-affirms our assessment of reaching the new milestone of USD 350 billion in the current fiscal, the highest ever exports figures during recent years braving all the odds.”
High growth was witnessed in Plastic & Linoleum, Petroleum, Organic & Inorganic Chemicals, Drugs & Pharmaceuticals, Engineering and Electronic goods and various labour-intensive sectors including Gems & Jewellery, Leather & Leather products, Ceramic Products & Glassware, commodities and in some Agri products, which are positive signs for future exports, Gupta added.
Quoting the numbers, he said “22 out of 30 major product groups, as against 16 out of 30 in the previous month, were in positive territory during October, 2018, which itself shows the resilience and hard work being put by the exporting community.”
Shedding light on imports growth in October 2018, FIEO president said that imports was also on a higher side with a growth of over 17 percent, which may push the current account deficit and inflation. However, the declining trend of crude oil prices may provide some respite on both front too.
He once again reiterated his demand for augmenting the flow of credit to export sector as sharp decline in credit, when exports are growing at the double-digit does not augur well for the sector.
He appreciated the initiative taken by the Finance and Commerce Minister for addressing the issue and hope banks will positively respond to it immediately.
President FIEO exuded confidence that despite increasing protectionism and high volatility in currencies, Indian exporters have managed well to get new orders and remain bullish on exports in short to medium term basis.