Rising protectionism threat to exports: FIEO

Increasing  protectionism, volatility in currencies and uncertainties clouding over global economy are major challenges to India’s exports, says premier export body FIEO, a day after foreign trade data showed only a moderate increase in exports in January. 

FIEO President S C Ralhan said, “While continuous positive growth in exports for the last five months is encouraging, the slowdown in global trade is equally affecting us.

Going by the current trend, we are expected to reach around $270 billion this fiscal.” India’s export growth is in tandem with global trade growth which is expected to be around 1.7% in 2016. India’s exports grew 4.3% in January, as per the government data. However, Ralhan said that growth in exports of rice, spices, cashew, oil meals, marine products, engineering goods, organic and inorganic chemicals, augur well for the future.

“We need to revisit the challenges faced by drugs and pharmaceuticals, gems and jewellery, carpets and plantations commodities so that they may also contribute to export growth in coming months,” the FIEO chief said in a statemet.

He, however, complimented the Commerce and Industry Minister for supporting the export sector through Interest Equalisation, MEIS, MAI and TIES schemes, resulting in positive growth in India’s exports when many advance and emerging economies are reflecting contraction in exports month after month.