"The continuance of the double digit growth in exports is a very positive sign. With encouraging index of industrial production (IIP) numbers for May, I expect a further improved performance in months to come," Federation of Indian Exports Organisations (FIEO) President M Rafeeque Ahmed said. (Agencies)
Ahmed said the global situation is conducive to exports as both advanced and emerging economies are showing better economic indicators.
The budgetary announcements, including extension of 24x7 facility for all export promotion schemes, institutionalization of Export Promotion Mission and greater involvement of the states will further facilitate exports besides reducing transaction cost and time, he said.
India's exports growth remained in double digit for the second month in a row in June at 10.22 percent but spurt in gold imports marginally pushed up the trade deficit to USD 11.76 billion.
"While the rise of over 9 percent in cumulative exports during the first quarter of 2013-14 reflects a steady improvement in global demand, we need to stay vigilant on trade deficit that has shot up to an 11-month high," Ficci President Sidharth Birla said.
However, credit rating agency ICRA said the growth in outbound shipments could moderate in the near future, while weak monsoon may prove to be a dampener by pulling down agricultural exports.
"Export growth is expected to be moderate in the coming months, reflecting external demand conditions, a waning of the favourable base effect and relative stability in the nominal exchange rate. The unfavourable monsoon conditions suggest agricultural exports would be muted in FY15," said Aditi Nayar, Senior Economist at ICRA Ltd.
Sectors that helped in pushing exports in June include textiles (14.39 percent), petroleum products (38.3 percent), engineering (21.57 percent), leather (15 percent), marine products (27.49 percent), oil seeds (44.4 percent) and tobacco (31 percent).
Engineering exporters' body EEPC India Chairman Anupam Shah attributed the rise in exports of engineering goods to uptick in US economy.
"While engineering, petroleum goods and others have bounced back, the agri exports and shipments of electronics goods are causing concern requiring immediate support from the government," Assocham Secretary General D S Rawat said.
Exports in June stood at USD 26.47 billion as compared to USD 24.02 billion in the same month last year.
The FIEO said that the flow of credit to the exports sector which is still not adequate, needs to be augmented, so that new and small entrepreneurs are not deprived of opportunities.
"The import growth in non-crude oil imports by 7 percent is a good sign, when seen against the background of the recent growth in manufacturing. The new Foreign Trade Policy 2014-19 should attempt to integrate India with the global value chain and focus on high tech exports, electronic hardware, branded exports, project exports, services exports besides, traditional sectors which have a high employment ratio," FIEO President M Rafeeque Ahmed said.
He said that the country should look for an export of USD 750 billion by 2018-19 which might look challenging but could be achieved with integrated efforts of all stakeholders.
"The continuance of the double digit growth in exports is a very positive sign. With encouraging index of industrial production (IIP) numbers for May, I expect a further improved performance in months to come," Federation of Indian Exports Organisations (FIEO) President M Rafeeque Ahmed said.