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, whileaskingthemtoconstantlyengagewiththegovernment.

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’ to deal with uncertainties.

With regard to imports, she assured the industry that the Governmentislookingatspecificitemstoseewhicharegoing to be consistently needed for next few years as well as those whoseimportcouldhurtdomesticmanufacturers.

“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 exporters have to be on their toes, such challenges demotivate them,” Sitharaman saidattheAssochameventhere.

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—duetoslowdowninglobaldemand.

Imports in January too contracted by 3.63 per cent to USD 50.66billion.

Sitharaman further said that customs authorities at the borders are keeping a tab on both exports and imports. “No way are we blanket taking a position, we are looking at specificitemstoseewhicharegoingtobeconsistentlyneeded for next few years and which are going to hurt us. Those which causehurtwearereadytoact,”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 essentialinputinmanufacturing.

“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 terms of imports,” Sitharaman said

TheMinistersaidthepriorityoftheGovernmentisgrowth 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 expenditure by 33 per cent to Rs 10 lakh crore, which is 3.3 per cent of GrossDomesticProduct(GDP).

“Wedidsolasttimeand,intheyearbefore,wehavemadesure we achieved the target. We have maintained the momentum in achievingthetargetlaidoutandthatisgoingtobeachallengefor meinreachingtheRs10lakhcrorein12months.Thechallengeis moreinachievingit,”Sitharamansaid.

The COVID-19 pandemic and Russia-Ukraine war led to supply chain disruptions, leading to high inflation. Central banks globally have been tightening monetary policy to tame inflation,butthathasalsoledtofearsofrecessioninadvanced economies.