India’s exports are expected to record a growth of about 15-20 per cent and touch USD 350 billion in the current fiscal on account of a host of factors including rise in commodity prices, exporters body FIEO said today. Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said despite increasing global protectionism, the country’s exports would continue to register healthy growth rates.
“Growth is looking promising this fiscal. Indian exports, which are hovering at around USD 300 billion, should show 15-20 per cent growth so as to reach USD 350 billion in this fiscal,” he told reporters here. He said the northward movement in petroleum and commodity prices and the recent depreciation of Indian rupee are supporting exports. He also urged the government to provide fiscal and non-fiscal incentives to boost the shipments in both advanced and emerging markets.
Gupta also said that although exports have recorded growth in 2017-18, labour intensive sectors such as carpet and handicrafts have definitely dented the job creation opportunities. “On a rough estimate, over USD 1 million exports create 100 jobs. Therefore, additional exports of USD 27 billion in 2017-18 should have created 2.7 million jobs in exports,” he added. In 2017-18, exports stood at about USD 303 billion.
Talking about the issues being faced by exports at insurance front, Gupta said that Export Credit Guarantee Corporation of India (ECGC) delay the process of claims, which impact exporters. “ECGC is creating problems for exporters. They try to find how to reject the claims of exporters. We have raised the issue with the commerce ministry,” he added.
Further, Gupta expressed hope that the government will pro-actively engage with trading partners particularly with the US so that the trade interest of the country is safeguarded. Commenting on the US decision to impose economic sanctions on Iran, Gupta said it would create an opportunity for domestic exporters to increase their shipments to that country.
He said that when the sanctions were imposed during 2013-14, the country’s exports to Iran increased to USD 5 billion and it was only USD 2.56 billion last year. “The crucial issue is that what kind of sanctions are being imposed by the US. This time Europe is not there. If sanctions will be imposed on the financial system, it may create a challenge for us but otherwise it will help boost rupee exports to Iran,” he said.
In such situation, Indian banks should help exporters by providing affordable credit. “I do not feel that India’s exports will be impacted due to the US sanctions,” he said.