Protectionism likely to hit Indian exports, MSMEs; annual GDP growth projected at 7.4% for 2018-19: Survey

New Delhi, May 31 (KNN) The latest round of FICCI's Economic Outlook Survey conducted by economists from industry, banking and financial service sector, said that the brewing trade tensions between the US and China and protectionist measures by some leading economies may hit the Indian exporters, particularly MSME exporters, in the coming months.

The economists unanimously felt that the brewing trade war can impact India indirectly, if not directly, as the country is deeply integrated with global economy. 

The trade related tensions will further exacerbate geopolitical strains and could lead to a slowdown in growth of world trade.

The economists believed that protectionist measures could undermine the multilateral trading system governed by WTO rules.

Further, it was opined that exports are likely to get impacted by all this and there are possibilities of an unexpected interruption in the global supply chain.

Also, export-oriented industries particularly MSMEs in sectors like iron and steel, machinery and metal products, chemicals and agricultural goods are likely to take a hit.

Highlighting the positive side, economists felt that the looming trade has the potential to open up new avenues for India.

For this, India should focus on deeper engagement with its key trading partners to insulate itself from the impact of protectionist policies.

According to the FICCI’s Economic Outlook Survey, it was estimated that the India’s GDP growth is expected to hover around 7.1 % for Q4, 2017-18 and 6.6 for the full year 2017-18.

The annual GDP growth for 2018-19 is projected at 7.4% by the participating economist; with a minimum and maximum range of 6.9% and 7.5% respectively.