From the Desk of Chairman
Dear Friends,
There is further deterioration in the outlook for International Trade following the conflict between Israel and Hamas in the first week of October which has the potential to disrupt the world economy. It may further fuel inflation and rising interest rates which are already high because of Russia-Ukraine war and adverse US-China relations.
While decline in Merchandise Exports has moderated to 8.7 % to 211.40 billion in H1 FY 24 on YoY basis, Services exports have increased by 5.6% to 164.89 billion. Of the 30 principal Commodity Groups, exports have increased in respect of 13 groups while exports have declined in 17 groups. In the major commodity groups, exports of Petroleum products were down by 17.61%, Engineering Goods down by 2.82%, Gems & Jewellery down by 24.83%, Chemicals down by 15.16%, RMG of all Textiles down by 15.36% while exports of Electronic Goods increased by 27.62% and Drugs & Pharmaceuticals increased by 5.02%.
As regards SEZs, during H1, FY 24, exports of Goods and Services from SEZ declined by 7 %, exports of Goods declined by 12%, export of Services by 3%. Sale of Goods to DTA from SEZs declined by 9%. During the same period, imports of Goods from SEZs declined by 11% and procurement of Goods from DTA by SEZs declined by 5%.
It is heartening to note that Hon’ble Commerce & Industry Minister is regularly reviewing the export scenario with EPCs and Industry Associations to address their concerns. In the last EPC meeting, CIM has indicated that there will be some positive news about the proposed DESH Bill shortly. However, there are fund constraints for coverage of EOUs and SEZ under the RoDTEP scheme, even though the RoDTEP Committee has submitted its recommendations about SEZs and EOUs about a year back. EPCES has been following up with the Government on a continuous basis. We hope that Government finalises the Bill and ends this policy uncertainty about SEZs at the earliest which is adversely affecting investment plans.
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Wishing you all a very happy and prosperous Festival Season!!!