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Exporters to face challenges like protectionism, commodity prices, inadequate liquidity: FIEO

Listing out challenges to be faced by exporters, Federation of Indian Export Organisations (FIEO) has said that rising protectionism, fluctuation in commodity prices and inadequate availability of liquidity are the three major challenges, which exporters will face in the coming months. It added the World Trade Organization (WTO) has already cautioned that the global trade growth is expected to be lower in 2019 than it was last year.

FIEO Director General Ajay Sahai has said that protectionism will continue to rise and it will impact global demand for goods. He said that the other two challenges include fluctuation in commodity prices and inadequate availability of credit as banks are not coming forward to lend exporters. He said 'These challenges would impact India's exports, so we need to gear up for this'.

Suggesting measures to resolve the issue, he said timely support by the government would help deal with these issues. He also suggested the banks to follow online procedure for credit lending as it will ease the processes. The WTO had in its preliminary estimates predicted a 3.7 per cent expansion of global trade for this year, but has revised that down to 2.6 per cent.

Sahai further said that as per the current growth rate, India's merchandise exports will touch $330 billion in 2018-19. During the April-February period of 2018-19, exports grew 8.85 per cent to $298.47 billion, while imports rose by 9.75 per cent to $464 billion. During 2017-18, the overseas shipments grew by about 10 per cent to $303 billion and in 2013-14, it aggregated at about $315 billion. Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.

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