Declining exports: Commerce ministry to meet exporters on Monday

economictimes.indiatimes.com:

commerce ministry has called a meeting of exporters on Monday to take stock of the situation, as the country's outbound shipments have been contracting for the last four months, an official said. Exporters are expected to flag issues like extending greater support to participate in global exhibitions and fairs; expediting negotiations to conclude free trade agreements with the UK, Canada, Israel and GCC (Gulf Cooperation Council); and allowing industry double weighted deduction on salary to professionals to retain talent in India.

Exports declined for the fourth-consecutive month by 10.3 per cent year-on-year to USD 34.98 billion in May, while the trade deficit widened to a five-month high of USD 22.12 billion, according to the ministry data. Cumulatively, exports during April-May this fiscal contracted by 11.41 per cent to USD 69.72 billion, while imports declined 10.24 per cent to USD 107 billion.Demand slowdown in major markets, high inflation in developed economies and the Russia-Ukraine war are impacting the country's exports.Apparel Export Promotion Council (AEPC) Chairman Naren Goenka said greater support measures from the government, such as for attending global exhibitions, would help in pushing exports.

FIEO Director General Ajay Sahai said that the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme benefits from Advance Authorisation, special economic zones and export-oriented units would also help in boosting exports. When asked about ways to promote the shipments, Sanjay Budhia, Chairman — CII National Committee on EXIM and MD — PATTON Group, said that given the global recessionary trends, a strategic approach is required to stimulate exports.