Reacting to the trade data for the month of November, M.Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) said that one month data showing single digit growth does not reflect the true picture.
President, FIEO added that delays at one of the major ports has also contributed to it besides modest performance of sectors such as Gems & Jewellery, Electronics, Petroleum, Plantations, Raw Cotton and Pharma.
Recent strike at NSICT, which lasted for almost 12 days and the Go-Slow movement at the GTI Terminals in November, resulted in large congestion at the JN Port Terminal which has affected the movement of Export containers, due to shut-outs and congestion. Terminals had to suspend receiving export containers due to lack of space as a sequel of strike affecting exports in November. These exports will be added in current months exports added Ahmed.
Ahmed said the softening of crude prices has brought down oil import bill but also pull down petroleum exports.
In Gems & Jewellery, the decline is contributed to jump in rough diamond prices resulting in lesser imports consequently lower export of cut and polished diamond and value added exports. However, stablisation of pricewill push their exports in forthcoming months.
In pharmaceuticals, the increasing competition from China and slowdown in Europe coupled with recent FDA scrutiny has slowed down exports, said FIEO Chief, but development in US and EU will help the sunrise sector to bounce back in this fiscal along with grant of FDA clearance to new pharma units.
Rafeeque Ahmed said that exports targets for the current fiscal will be achieved easily and November figure may be seen as aberration for reasons enumerated above. He also added that trade deficit will be within USD 140-150 Billion in the current fiscal as against USD190 Billion recorded in 2012-13 which will also help in keeping CAD between USD 50 -60 Billion.