India's global exports in labour-intensive sectors declined in last 5 years: FIEO

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PTI quoted FIEO report as saying. The Federation of Indian Export Organisations (FIEO) also said that a note of caution is warranted regarding a distinct spike in export growth of roughly $40 billion as this particular surge is likely attributed to a rerouting of crude oil trade routes via India to Europe. It added that this phenomenon may not be sustainable in the coming years.

Among other things, the report said that the most "pressing concern" regarding the negative export growth is the "poor" performance of labour-intensive sectors. ALSO READ: Duty, tax remission scheme to run till end June, 2024 The labour-intensive sectors hold immense significance in India, not only for their job creation potential but also for their substantial contribution to net high-value addition. "Addressing this challenge requires a proactive approach that delves into the underlying factors contributing to the loss of market share.

It calls for a comprehensive analysis of the dynamics at play, ranging from maintaining the competitive advantage, reducing the production costs and increasing efficiency to quality and innovation," the report said. Elaborating on the importance of promoting traditional sectors, FIEO said that the exports of mobile phones, which amounts to $10 billion, has a net value addition of about $1-2 billion. On the other hand, $10 billion worth of exports of traditional sectors would have a net value addition of over $9 billion, it added.