New Delhi :- Reacting to exports data for the month of December 2023, which showed a marginal increase of 1% with exports of US$ 38.45 billion, Mr Israr Ahmed said that the same is due to rising geo-political uncertainties, logistics challenges, slow global economic recovery and demand. FIEO Chief further added that Imports, however, declined by 4.85 % to US$ 58.25 billion in December last year. He also reiterated that during April-December this fiscal, exports marginally dipped by 5.7 per cent to US$ 317.12 billion but Imports dependence reduced by 7.93 per cent to US$ 505.15 billion.
The drop in commodities prices, from the elevated level in 2022, also contributed to the decline. Almost all countries exports are exhibiting a declining trend, with many witnessing a double-digit dip, said Mr Ahmed. FIEO President. He further reiterated that recent tensions in West Asia especially the threat for consignments routing through the Red Sea has further added to woes of the exporting community, as the freight rates have gone up unimaginably high, with further burden of various surcharge, pushing Indian exporters to hold back around 25% of the outbound shipments transiting through the Red Sea, which added to the sense of scepticism and nervousness among the businesses and markets across the world. While goods exports have shown marginal increase during the month, services continued with its growth momentum and maintained the rising trend, helping to narrow the trade deficit.
FIEO President reiterated that the need of the hour is to provide much needed momentum to exports sector through addressing the Red Sea challenges by ensuring availability of marine insurance and bringing down freight charges. Besides, the sector needs easy & low cost of credit, marketing support besides conclusion of key FTAs with UK, Oman and EU will see the light of the day soon.
Mr Israr Ahmed sounding optimistic, added that the financial year-wise exports will cross last year’s figures.