FIEO’s take on Trade figures

The Federation of Indian Exporters Organization (FIEO) has attributed the marginal rise in country’s exports during December 2023 to rising geo political uncertainties, Logistical challenges, slow global economic recovery and demand.

The FIEO chief commenting on the trade figures released by the commerce ministry said the

Imports, however, declined by 4.85 per cent to 58.25 billion US dollars in December last year. He also reiterated that during April-December this fiscal, exports marginally dipped by 5.7 per cent to 317.12 billion US dollarsbut Imports dependence reduced by 7.93 per cent to 505.15 billion US dollars.

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.

The 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. It has pushed the Indian exporters to hold back around 25 per cent of the outbound shipments 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.

MrIsrar Ahmed sounding optimistic, added that the financial year-wise exports will cross last year's figures.