NEW DELHI: India’s exports have started to show signs of recovery,after falling steadily in April due to the covid-19-led restrictions imposed on international borders, said commerce and industry minister Piyush Goyal.
“Currently, we are about 10-12 per cent down. So in a sense, we have reached up to 88-90 per cent of the level of exports that we had in June 2019 in the first two weeks of this month. I am awaiting data for the third week (of June),” Goyal said, while speaking at the Confederation of Indian Industry’s Horasis India Meet.In May, exports shrank 36.47 per cent to $19.05 billion compared to a 60 per cent contraction in April, primarily due to cancellation of orders. In fact, exports remained subdued even during the last financial year ended March because of protectionism, among various other factors. It declined 58.7 per cent in March. Now with just two weeks left, June exports are likely to be almost as the same level as last year.
The Federation of Indian Export Organisations (FIEO) said that there is a drastic arrest in fall of exports compared to April but recovery will be slow due to globally slowing economy.
“Revival still seems to be a very slow process as the global business sentiments are at its lowest, impacting the supply chain and bringing slump or recessionary conditions in the economies across the world,” the federation said.
Commenting on subsidies, Goyal said that the focus is on sustainable growth and not on giving “handouts” for export industry, which would not help exporters in the long run.
He further said that India has made up its mind that we are going to only accept good quality products. Even if a domestic quality product is a bit costlier than imported one, it is sensible to buy Indian item, he said, adding that going forward, people could have to pay a “terrible price” if they don’t buy quality Indian goods. India has already tightened its FDI norms for countries it shares land border with.Imports fell by 51.1 per cent in May resulting in a trade deficit of just $3.2 billion.