As news of a second lockdown in the key European markets emerge, India reported a 5.4% dip in last month’s export data. The country exported goods worth US$ 24.82 billion last month, as against US$ 26.23b in October 2019.
The pandemic with additional issues such as container shortage due to imbalance in trade is further adding to the problems of the exporters. To improve the conditions Piyush Goyal, Commerce and Industry requested Minister of State for Transport and Highways Nitin Gadkari to invite non-cartel shipping lines and also to provide preferential berthing to cartelized lines with berths, thus leading to a 4060% increase in the freight.
Additionally, the commerce ministry may limit benefits for exporters under the new Remission of Duties or Taxes on Export Products (RoDTEP) scheme. The rates will be finalized on a priority basis for select sectors due to resource constraints.
Trade Update
8TH NOVEMBER
# 91
Amid the unstable condition of the international market due to the COVID19 situation, the export by India in October was reduced by 5.4 percent and came down to 24.82 billion dollars, which was 26.23 billion Dollars in October 2019.
A revival aided the sharp recovery in exports. New export orders rose from 53.8 in September to 55.2 in October. The pace of improvement in this subindex was the most pronounced in close to six years, the report said. Consequently, the sentiment of manufacturers towards the year ahead production outlook got a significant boost. The level of confidence was at a 50month high of 64.3 in October.
To deal with the situation, Piyush Goyal, Commerce and Industry Minister, has requested Mansukh L Mandaviya, Minister of State for Road Transport and Highways, Shipping and Chemicals and Fertilizers, to auction such cargo and also invite non-cartel shipping lines to give preferential berthing to cartelized lines who have berths leading to 4060 percent increase in freight, which will increase competition, lessen monopoly in the market and ultimately benefit the exporters.
The Centre may limit benefits for exporters under the new Remission of Duties or Taxes on Export Products (RoDTEP) scheme, the rates for which are being finalized on a priority basis for select sectors, owing to a resource constraint.
The Plastics Export Promotion Council of India has announced plans to increase plastic exports to $25 billion in the next five years while posting a 20 percent growth during FY 2021 and FY2022. The Mumbai-based apex trade body will invest $6.2 million (Rs 46.23 crore) and create 18 plastic parks, among multiple measures to boost environmentally sustainable growth of the plastics industry.
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