FM exhorts exporters to ‘foresee’ impact of global slowdown & engage with Govt

NEW DELHI: Finance Minister Nirmala Sitharaman has exhorted exporters to be receptive and ‘foresee’ how the recession or slowing economy abroad will pan out for them, while asking them to constantly engage with thegovernment.

Stating that external uncertainties are far more ‘unpredictable’ and therefore challenging, Sitharaman said in a post-pandemic, post-war world, and where there is a repeat occurrence of virus, there is no fixed ‘template’todealwithuncertainties.

Withregardtoimports,sheassured the industry that the Government is looking at specific items to see which are going to be consistently needed for next few years as well as those whose import could hurt domestic manufacturers.

“The changes abroad, recession abroad or the slowing economy abroad are all going to be challenge for Indian exporters. So Indian exporters will have to be far more receptive of what is happening there or even foresee how that will pan out for them and keep constantly engaging with the government otherwise at a time when exportershavetobeontheirtoes,such challenges demotivate them,”

Sitharaman said at the Assocham eventhere.

The Minister’s comments came after Commerce Ministry data showed that India’s exports dipped by 6.58 per cent to USD 32.91 billion in January — second straight month of decline — due to slowdown in global demand.

Imports in January too contracted by3.63percenttoUSD50.66billion.

Sitharaman further said that customs authorities at the borders are keeping a tab on both exports and imports.“Nowayareweblankettaking a position, we are looking at specific items to see which are going to be consistently needed for next few years and which are going to hurt us. Those which cause hurt we are ready to act,” theMinistersaid.

She also asked businesses to keep the Government informed with the input on import of items which they think could hurt domestic industry as well as those which are essential input inmanufacturing.

“We have gone item wise in customs duty and therefore we were able to bring it down in 18-20 categories… We will bring it down at the same time keep a very close watch on flooding or surge in any kind of imported goods. Even if the surge was only for 3 months, it can hurt us for full year. So there is a very keen eye being kept on what’s happening in our borders in terms of exports and in termsofimports,”Sitharamansaid

The Minister said the priority of the Government is growth and in the last three budgets, the Government has kept up the momentum by increasing public spending on infrastructure projects

The Budget 2023-24 hiked capital expenditureby33percenttoRs10lakh crore, which is 3.3 per cent of Gross DomesticProduct(GDP).

“We did so last time and, in the year before,wehavemadesureweachieved the target. We have maintained the momentum in achieving the target laid out and that is going to be a challenge for me in reaching the Rs 10 lakh crore in 12 months. The challenge is more in achievingit,”Sitharamansaid.

The COVID-19 pandemic and Russia-Ukrainewarledtosupplychain disruptions, leading to high inflation. Central banks globally have been tightening monetary policy to tame inflation,butthathasalsoledtofearsof recessioninadvancedeconomies.