however, FIEO analysis of business data In a statement, the FIEO points to some concerns and new very positive scenarios based on UN Comtrade figures for the last five years, 2016-2020.
From 2016 to 2020, global imports grew at a compound annual growth rate (CAGR) of 3%, while Indian exports only grew by 2%. However, India’s exports have been hit hard by the blockade in recent months, lowering its CAGR over the past five years, and said the same explanation applies to global imports in 2020 to some extent. .
According to the FIEO, many labor-intensive sectors that contribute significantly to Indian exports are constantly losing their share of the world market. For example, between 2016 and 2020, global textile imports stagnated, while India’s textile exports declined at a CAGR of 8% over the same period. In knitwear, global imports remained stagnant, but India’s knitwear exports fell 6% between 2016 and 2020.
In the leather footwear sector, where global imports grew at a CAGR of 1% between 2016 and 2020, Indian exports only declined at a CAGR of 7%. Likewise, in other leather goods sectors including saddlery, leather bags, handbags, belts, etc., world imports have remained stable, but India’s exports of these products have declined to a low. 4% CAGR.
Some sectors have been very strong over the past five years and are on a growth track, according to the EIFE, but they have great potential to further boost exports.
Despite lower interest rates, the costs of credit to Indian exporters are much higher than those of their competitors. The Interest Equalization System (IES), valid until June 30, offers competitive credit to manufacturers of micro, small and medium enterprises (MSMEs) and exporters of products covered by 416 specific tariff lines. As a result, the FIEO handed over a plan to the government on March 31, 2024.
Delays in returning export benefits put additional pressure on exporters’ liquidity. These include delays in the notification of tariffs and rates of the Tax Exemption Scheme (RoDTEP) on exported products, the blocking of India’s Commodity Export Regime (MEIS) portal d ‘April to December of last year, and the Indian regime’s service exports. Late notification (SEIS) Exporter tax rate and blockade of capital labeled as “dangerous”
Logistics costs in India are around 14% of GDP, 8% in the United States and 10% in European Union (EU) countries. To support export infrastructure, the FIEO proposed to increase the budget allocation of the Trade Infrastructure Export Scheme (TIES). The Commonwealth said the allocation for this plan from 2021 to 2010 was only Rs 7.5 billion.
Since the start of the pandemic, pressures on India’s logistics infrastructure have included a shortage of containers, the unavailability of ships and the height of the container cargo. Due to the mismatch between supply and demand between containers, some stakeholders have suspended regular bookings and allocated containers to those who pay. Premium, said the FIEO. Prices have skyrocketed from the pre-pandemic period.
The Commonwealth also pays around $ 65 billion a year for international shipping, but is still at the mercy of foreign shipping companies and needs a big shipping company. “If an Indian shipping company wins 25% of its turnover, there is more than $ 25 billion in the markets waiting for it,” he said.
Sakthivel also urged the government to fund the market access initiative from the current 20 billion rupees. Alternatively, he proposed a planned marketing plan with a minimum annual corpus of 1,000 chlorine, with the aim of increasing exports to $ 1,000 billion over the next five years.
Fiber2Fashion Press Office (DS)
A Sakthivel, president of the new Federation of Indian Exporters Association, said she would create an export promotion cell to identify new markets and products. The government’s $ 400 billion export target for this year is ambitious, but he said it is achievable as the tremendous export growth seen from April to May will be the driving force.