Reacting to February, 2024 trade data especially exports, which rose by almost 12 percent to $41.40 bn, achieving the highest monthly exports during the fiscal, Ashwani Kumar, President, FIEO said that the last time when the figures showed such a higher growth was in March 2023, when it was at $41.96 bn.
Imports rose by over 12 percent to $60.11 bn showing a four-month high growth. Kumar added that such an impressive increase in overall exports growth despite the Red Sea crisis, tight monetary stance by the developed world and falling commodity prices posing challenge, not only portrays the dedication and commitment of the sector but also the resilience of the exporting community, who have continuously been braving such odds since Russia-Ukraine war. The exporters have consistently been performing, driving the growth of exports, and also adding to the growth momentum of the economy.
FIEO President added that four-month high growth in imports has led to the increase in trade deficit in February, 2024 to $18.71 bn. Key growth drivers of merchandise exports during the month included Engineering Goods, Electronic Goods, Organic & Inorganic Chemicals, Drugs & Pharmaceuticals and Petroleum Products, which itself is a good sign as most of these sectors are labour-intensive sectors giving boost to employment creation in the country, said Ashwani Kumar.
FIEO Chief further added that though during April-February, exports marginally dipped touching $395 bn but our Imports dependence also reduced to $225.20 bn, down from $245.94 bn in the first 11 months of 2022-23. Kumar 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 the burden of various surcharge. Ashwani Kumar also raised concern that much will depend on the new contracts to be signed with buyers during the new fiscal as the exporters have been absorbing the burden of increased freight cost as per the old agreement.
FIEO President therefore reiterated that the need of the hour is to address the Red Sea crisis challenges by ensuring availability of marine insurance and rationale increase in freight charges. The sector also needs easy & low cost of credit, marketing support, besides conclusion of some of the key FTAs with UK, and Oman soon. However, Kumar is optimistic of crossing last year’s overall exports figures.
