New Delhi, Jan 16 (KNN) Marginal growth in overall merchandise exports during December 2018, on account of global trade tensions needs immediate government intervention, said experts from various association.

Engineering Export Promotion Council (EEPC) India

Commenting on December 2018 exports data, Chairman of Engineering Export Promotion Council (EEPC) India, Ravi Sehgal said “Virtually no growth in overall merchandise exports, certainly calls for a major rethink and redrawing of our export strategy, amongst exporters, government and the RBI as to how to plug the loose ends and reduce the cost of shipments along with easing of procedures.”

He said “A sharp drop of more than three per cent in engineering goods'  overseas shipments during December 2018 over the same month in the previous year, is a matter of grave concerns, signalling the trade tensions and the global slowdown have started biting the world trade.”

The EEPC India Chairman said “The unfolding global situation comprises not only problems on account of trade tensions between China and the US but other issues like uncertainty over Brexit fall out in the European markets.”

Drip Capital- US based trade finance firm 

Co-Founder and Co-CEO of Drip Capital, Pushkar Mukewar said “The 13.8% growth in overall exports is good news, of course. Falling crude prices, thanks largely to increased global production, will benefit the country, although there are fears that this spike in output could lead to a global glut.”

Looking at non-petroleum products, the fall in coffee exports is not surprising, as it is in line with what coffee growers anticipated last year, he added.

Federation of Indian Export Organization (FIEO)

On marginal growth in exports, President of FIEO, Ganesh Kumar Gupta said that the data yet again have shown a marginal growth due to uncertain global cues and challenges on the domestic front.

He said that China's exports contracted in December 2018 highlighting fragile global conditions. However exports during the month was close to USD 28 billion with a growth of just 0.34 per cent, even when the weakening global economic outlook are showing no signs of respite.

“But during the month, the sectors which were showing high growth in the previous months are now witnessing nominal growth or marginal growth such as the Petroleum sector, Organic & Inorganic Chemicals, Plastic & Linoleum, Electronic goods and RMG of all textiles”, he added.

Further, he said that all major labour-intensive sectors of exports like Gems & Jewellery, Engineering, Leather & Leather products, Man-made yarns/fabs/made-ups, Handloom products, commodities including most Agri products are now in negative territory.

Also, he pointed out that 17 out of 30 major product groups were negative territory during December, 2018.

However on the imports front, the growth in December, 2018 was on negative side with -2.44 percent mainly due to reduction in gold and pearls, precious & semi- precious stones import. Spin off effect due to global trade war has also impacted the country's trade impacting both imports and exports, FIEO Chief added.

He once again reiterated his demand for urgent and immediate support including augmenting the flow of credit and better fiscal support. 

President FIEO exuded confidence that despite current growth trends the exporters will manage to do well ending the fiscal with merchandise exports of USD 340-350 billion with the timely and much needed support of the government.