Global Economy

Rupee volatility, rising cost of borrowing and pending GST refunds major issues faced by exporters: EEPC India

A number of domestic as well as global impediments have clouded the prospect of global trade while Indian engineering trade is not an exception.Volatility of rupee in the foreign exchange market, rising cost of borrowing and raw material, besides pending GST refunds are among the major issues faced by exporters, as they are in the midst of global slowdown marked by US-China trade war and demand contraction, said chairman of EEPC India, Mr Ravi Sehgal at the 35
th EEPC India eastern region awards in Kolkata on Saturday.

The EEPC India chairman said the Union Commerce and Industry Minister Mr Piyush Goyal is proactively engaged with the exporting community to deal with the challenging global situation. The measures on which work has begun include providing inputs, especially steel at international prices.

Regional chairman of EEPC India (Eastern Region), Mr B D Agarwal said there is a silver lining for India in the ongoing US-China trade war. “This war presents us with opportunities of replacing Chinese exports in the US market and bringing the US manufacturing base in China to India by way of joint ventures”. He also added that Indian engineering exports went to negative zone in July with merchandise exports experiencing sluggish growth of 2.25%. However, government has taken comprehensive effective measures to encourage Indian manufacturing and capital inflow into the nation with special stimulus to auto sector among others.

Congratulating the winners of the export awards, EEPC India executive director, Mr Suranjan Gupta said that fall- out of GSP withdrawal by the US, action of EU against India, imposition of section 232 tariff on steel and aluminium against India by the US, pressure from developed world to frame a WTO-compliant export policy and rising input and transportation cost may limit India’s engineering exports in 2019-20 which had reached all- time highs of $76.2 billion over 2017-18 and $81 billion during 2018-19 from $65.4 billion over 2016-17.

As many as 50 members were given awards for their stellar performance in Engineering Exports for the fiscal 2016-17. Electro Steel, DCPL, Texmaco, Exide, were few of the notable winners from the region.


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