Reacting to the trade data for the first quarter of the FY 2021-22, Dr A Sakthivel, President, FIEO said that the highest-ever quarterly growth in exports by more than 85 percent with USD 95 billion over FY 2020-21 and by about 18 percent over FY 2019-20 not only shows the resilience of the exports sector but also the strength of the Indian economy. He also reposed faith in the overall exporting community, who in these difficult and challenging times have continuously been able to perform with vigour and dynamism. Exports for June, 2021, which for the fourth time in a row, have shown a very impressive growth of 48 percent with USD 32.5 billion during the month, also augurs well for the overall foreign trade sector of the country, added FIEO Chief.
Further, as the overall global demand has remained buoyant, the partial lockdowns in different parts of the country had kept factories running at half strength, reiterated FIEO President. However, with decline in daily cases of infection and resumption of economic activities, India is now set to achieve an all-time high export figures for the financial year. Dr Sakthivel also added that, with such a growth pattern showcased by the exports sector, the country’s economic recovery will be likely led by exports especially from MSMEs.
Dr Sakthivel reiterated that the top sectors, which performed impressively during the first quarter of the FY 2021-22, starting with 3-digit growth were Iron-ore, Rice, Cotton Yarn/Fabs/Made-ups, Handloom Products etc., Engineering Goods, Plastics & Linoleum, Organic & Inorganic Chemicals, Electronic Goods, Petroleum Products, Marine Products and Drugs & Pharmaceuticals. FIEO President additionally emphasised that as the labour-intensive sectors were main contributors to these ten impressively growing sectors during the quarter, it will further help in creating jobs in the country.
He complimented the government especially the Union Finance Minister, Commerce & Industry and Textiles Minister under the able and dynamic leadership of the Hon’ble Prime Minister, Shri Narendra Modi for the continuous support to the sector during such challenging times.
He applauded the slew of measures taken by the government during recent times to support exports; the extension of Interest Equalisation Scheme by 3 months to September 30, 2021 and the announcement by the Union MSME Minister on revised guidelines for MSMEs with the inclusion of retail and wholesale trades as MSMEs, which will help 2.5 cr traders to get benefit of priority sector lending under RBI guidelines. Besides the recent key announcement on continuance of RoSCTL benefits to Apparel & Made-ups is a huge support for the sector. He reiterated that the need of the hour is to notify the RoDTEP rates to remove uncertainty from the minds of the traders and the industry, besides addressing some of the key issues which include priority status to exports sector, release of the necessary funds for MEIS and clarity on SEIS benefits, resolving risky exporters’ issues and continuance of seamless refund of IGST and more importantly continuing with IGST option for exports.