NEW DELHI: The plunge in exports from the small and medium enterprises (SME)-dominated sectors is troubling, according to Federation of Indian Export Organisations (FIEO).
FIEO President M Rafeeque Ahmed said, “Sluggish growth registered by the export sector in April is a cause of concern. The more disturbing news is sharp decline or moderate growth in exports of labour intensive sectors like gems and jewellery, readymade garments, leather, electronics, plastics, etc.”
Reports suggest that the gems & jewellery sector saw the strongest plunge during April, with 25.7% contraction in the international shipment. It was followed by readymade garments that saw 9% slip in exports during the same period.
The leather sector also witnessed muted demand in April, clocking 3.2% growth rate, and exports from electronics and plastic sector posted just 5.4% and 2.7% growth, respectively.
It is time for the Central government to devise suitable strategy to control the export slowdown in the revised edition of the Foreign Trade Policy, said Ahmed.