Ramfeezled but Recovering
Nitin Gadkari, Minister of Small and Medium Businesses (MSMEs), said that Indian MSMEs need to increase their global supply chain share. He also added that the sector should focus on boosting exports and reducing overhead costs for a quick revival.
On the other side, last week’s economic activity trended a little lower than the expected levels portraying a challenging environment for growth, subduing both private investment and exports as the external demand stays anemic.
With European countries like France and Germany entering into a second lockdown --- a disruption in the global supply chain is expected. Indian engineering exporters are stressed as they anticipate a subdued demand in the upcoming months from the region. Europe is among the top three destinations of shipments of engineering products from India.
Boosting share of small businesses in economy a priority: Nitin Gadkari
Gadkari said the goal was to scale up the contribution of MSMEs from 30% of GDP to 50% of GDP. “For the quick revival of the MSME sector, we now need a special focus on boosting exports and reducing overall costs. The MSME sector needs to adopt necessary practices too. Reduce power and logistics costs. That too is important," the minister said.
India, UK ink pacts on infrastructure, financial services and sustainable finance
India and the UK signed agreements on Wednesday on financial services, infrastructure, and sustainable finance at the 10th Economic and Financial Dialogue (EFD) between the two countries. The agreements will help boost jobs and investments in both countries while building economic ties, an official statement said.
Weekly economic indicators stuck in narrow range, exports remain subdued
Key indicators of economic activity trended higher for the latest week but remained below levels seen earlier in the month; reflecting the challenging environment for growth in the gross domestic product (GDP) referred to by a central bank committee earlier in the month. Both private investment and exports are likely to be subdued, especially as external demand is still anaemic.
Engineering exporters concerned about volume amid worsening COVID19 scenario in Europe
Quantum of such exports from the country was USD 75.8 billion last year. Engineering exporters are concerned about the volume of exports this year due to the worsening COVID19 situation in Europe which is among the top three destinations of shipments of such products from India, an official said on Tuesday.
Global trade to shrink by 20 per cent
Revising its earlier estimate, the United Nations Conference on Trade and Development has predicted global trade to plummet by 20 percent or by about $6 trillion in 2020. In 2019, global trade stood at about $25 trillion, with estimates then predicting a 3 percent rise in 2020. Without a swift recovery in the second half of 2020, the consensus now is that trade will instead plummet by about 20 percent this year, or by about $6 trillion. Such a decline would be unprecedented, being significantly larger than the $4 trillion fall seen during the 2009 recession, said Mukhisa Kituyi, Secretary-General, UNCTAD in an article published on Thursday.
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