Exports growth encouraging though global conditions still remain challenging: FIEO

New Delhi, Dec 16 (KNN) Sectors, in which MSMEs have huge contribution, like Jute manufacturing, Cashew, Tobacco, Engineering goods, species have shown impressive growth contributing in a major way to the growth in exports during November, exporters’ body FIEO has said.

The country’s trade deficit increased to USD13 billion in November — the highest since USD13.08 billion in July 2015, and sharply wider than the USD10.41 billion gap in October — as imports, including purchases of gold, outpaced exports of goods. The trade deficit in November 2015 was USD10.47 billion.

For the third consecutive month, exports recorded a positive growth of 2.29 per cent year-on-year to USD 20 billion.

However, goods imports grew at a faster pace of 10.4 percent to USD 33.02 billion, according to the data released on Thursday by the Commerce Ministry.

Commenting on the November, 2016 Trade Data, FIEO President, S C Ralhan said that exports for the month of November, 2016 continued with its positive growth trend as India’s exports touched over USD 20 billion with a growth of 2.29 percent during the month.

One of the other major encouraging signs was that the overall exports for the period April-November, 2016-17 also turned positive showing a growth of 0.10 percent during the period.

FIEO Chief further added that what is more assuring this time is that the growth across sectors in 20 out of 30 major product groups, have not only been positive in November but sectors specially Iron ore have continued to show an overwhelming growth of over 1012 percent with other sectors like Jute manufacturing, Oil Meals, Fruits & Vegetables, Coffee, Marine Products, Cashew, Tobacco, Engineering goods, species have also shown impressive growth contributing in a major way to the growth in exports during the month.

Ralhan reiterated that Petroleum exports which has a major contribution in the exports basket has for the first time in recent months shown positive growth of over 3 percent.

FIEO President said that looking at the current trend; we are on our course to achieve exports of about USD 270-280 billion during the current fiscal.

The focus in such challenging times should on marketing with proactive support from the government which also has to ensure that exporters get their entitlements expeditiously so as to have liquidity.

MSME sector contributes to 40 percent of country’s total exports. (KNN Bureau)