Apex industry association of exporters, FIEO, has revised its exports decline projection for the current fiscal in the wake of Covid-19 pandemic which has considerably destabilized global trade.
“Initially, looking into the lockdown challenges and projected decline in global trade, we expected 20% decline in our exports. However, two days back, the WTO trade estimates for the second quarter puts the contraction only at 13%. We are receiving lots of enquiries from countries where anti-China sentiments are high. Many of these enquiries have been converted into orders, as well. However, the demand in employment intensive sectors like gems & jewellery, apparels, footwear, handicrafts, carpets is still a challenge. We do not expect much improvement in demand. Therefore, we expect around 10% decline in India’s exports in the current fiscal,” a late last week release from the association maintained.
To make the most of the available opportunity, the association has also suggested a 3 pronged strategy for its members: focus on countries which are providing demand stimulus like US, UK and many other advanced and emerging markets; explore countries having high anti-China sentiments led by US including EU, Japan, South Korea, Australia, New Zealand, Canada, etc. and revisit economies depending on crude & commodities exports as prices of such products are likely to be subdued (Middle East, LAC and CIS)