TRADE UPDATE #134

On the Right Track

24/09/2021

Earlier this week, union shipping minister Sarbananda Sonowal virtually inaugurated a dwarf container train service from Mumbai's Jawaharlal Nehru Port (JNPT) to ship the first batch of consignments to inland container depot Kanpur. Officials said this facility kicked off from one of the busiest ports in the country will not only help streamline rail movement of cargo but also lower hinterland logistics costs, which currently has been the top-most priority for the government.

Besides this, although the order books are looking promising till October, exporters continue to struggle with liquidity challenges and uncertainties on the policy front. Industry experts want the government to rationalize the export policy of raw materials, automatize the enhancement of the existing working capital requirement by 20-25% by banks, extend factoring facilities with institutions like Export Credit Guarantee Corporation of India (ECGC), to name a few. Moreover, with Ford India announcing the closure of its manufacturing unit, the future of the Chennai-based MSMEs who supplied materials and components to the automobile company as well as its thousands of plant employees now lies in the dark.


ECONOMY

Will focus on new products, markets for export diversification: FIEO

Apex exporters' body Federation of Indian Export Organisations (FIEO) on Monday said it will focus on new products and markets for diversification with a view to boost the country's outbound shipments.


SHIPPING & LOGISTICS

JNPT flags off train service for dwarf containers

Jawaharlal Nehru Port Trust (JNPT) has introduced a dwarf container train service from its dwarf container depot (DCD) at the port to ICD (inland container depot), Kanpur.


MSMES

Ford India restructuring: TN MSMEs expect upto 40% loss but overall impact yet to be seen, says official

The estimated turnover loss for some of the MSMEs in Tamil Nadu supplying to Ford is expected to be from 20 per cent to 40 per cent, however, the conclusive data is yet to be gathered from all state MSMEs working with Ford to understand the overall impact of the Maraimalai Nagar (near Chennai) plant’s closure announced by the company, a senior official in the MSME department of the Government of Tamil Nadu told Financial Express Online on anonymity.


ECONOMY

Govt To Start 24 Hours Helpline To Assist Exporters And Resolve Issues: Piyush Goyal

The Central Government is going to establish a 24 hours "Helpline" for assistance to exporters and resolution of issues, said Union Minister of Commerce and Industry, Piyush Goyal, on Monday.


BILATERAL TRADE

India’s exports to EU declined in the last 20 years, accounts for mere 0.9% of the total imports of EU

India’s exports have seen a steady growth over the last six months, but bucking this trend trade with the European Union (EU), which is the second largest export market for India after the USA, has seen a steady decline.


OTHER NEWS