The Ministry of Commerce is convening a meeting with exporters on Monday to assess the current situation as the country’s outbound shipments have been declining for the past four months. This comes as India’s exports contracted for the fourth consecutive month by 10.3% year-on-year to $34.98 billion in May, with the trade deficit widening to a five-month high of $22.12 billion, according to official data.
Exporters are expected to raise concerns such as the need for increased support to participate in global exhibitions and fairs. They will also push for expediting negotiations to finalize free trade agreements with countries including the UK, Canada, Israel, and the Gulf Cooperation Council. Additionally, exporters are seeking double-weighted deduction on salaries to professionals in order to retain talent within India.
The cumulative figures for exports during April-May this fiscal year highlight a contraction of 11.41% to $69.72 billion, while imports decreased by 10.24% to $107 billion. The decline in demand in key markets, high inflation in developed economies, and the Russia-Ukraine conflict have had a significant impact on India’s exports.
Export promotion bodies such as the Apparel Export Promotion Council (AEPC) and the Federation of Indian Export Organisations (FIEO) have stressed the importance of government support, especially in terms of attending global exhibitions, as a means to boost exports. Other key measures identified by experts include the focus on the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Advance Authorization scheme.
To address the challenging global economic landscape, experts suggest adopting a strategic approach to stimulate exports. Resolving issues related to non-tariff barriers that affect supplies to critical markets should be a primary focus. In addition, technological upgrades and innovation in manufacturing processes, as well as skill development initiatives, are crucial to improving the quality and competitiveness of Indian products.
There are also suggestions to set up a trade promotion body with dedicated overseas offices for branding, marketing, and providing services to Indian exporters. The promotion of quality standards and streamlining regulatory processes in sectors such as agriculture and food processing can further enhance India’s export potential.
By adhering to these guidelines, it is hoped that the Ministry of Commerce will be able to address the concerns of exporters and devise effective strategies to boost India’s export performance in the face of a challenging global economic environment.
