Global factors and deceleration in manufacturing contributed to exports decline: M. Rafeeque Ahmed, President, FIEO
FIEO/PUB/PR /60/12 - June 14, 2012
Global factors and deceleration in manufacturing contributed to exports decline: M. Rafeeque Ahmed, President, FIEO
Reacting to the Trade Data for the month of May, 2012, Mr M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) said that the decline in exports is on account of global trade slowdown and deceleration in domestic manufacturing. Mr Ahmed observed that many countries in the world are facing huge setback in exports and India is no exception to it.
However, the growth shown by Apparel and Pharmaceutical sectors, both dominated by MSME Sector, is an encouraging sign and augur well for other sector of exports. The softening of crude and metal prices also have their share in reduced value-wise exports of petroleum products, gems & jewellery and engineering. President, FIEO, however, expressed his satisfaction with little moderation in imports particularly on account of over 50% decline in Gold & Silver and over 20% in electronics.
Mr Ahmed said that while next few months may be challenging but with little stability in Euro Zone, exports will be back on track in the next second half of the fiscal ensuring 15-20% taking overall exports to over US$ 350 billion. Exporters should explore new markets and new buyers in the existing market to take full advantage of depreciation of rupee while simultaneously increasing their productivity through efficiency and cost cutting measures as a long term strategy to survive in world market added FIEO Chief.
