New Delhi, September 16: The overall exports of India in first quarter of financial year 2020-21 declined by 25.42 percent. The massive contraction nearly subtract one-fourth of the country's total quantum of exports. The period also saw a startling decline in the Index of Industrial Production (IIP), which stood at 107.8 in the June month. India's GDP Shrinks by 23.9% in Q1 of FY 2020-21, Worst in Past 40 Years.
"The quick estimate of the Index of Industrial Production (IIP), released by the Ministry of Statistics and Programme Implementation for the month of June, 2020 stands at 107.8 as compared to 53.6 and 89.5 in April, 2020 and May, 2020 respectively," said a statement issued by the Ministry of Commerce & Industry.
The overall export, including merchandise plus services, plunged by 25.42% during the period April-June, 2020 as compared to the corresponding period of previous year.
The latest merchandise exports show a recovery, with export decline reducing to (-)12.66% in August, 2020. With the gradual opening up of the economy after the nation-wide lockdown, industrial activity has started to normalise, the government said.
In the statement issued by the Commerce Ministry, the government listed the following key steps which have been enacted to re-boost exports.
- The validity of Foreign Trade Policy (2015-20) extended by one year i.e. upto 31-3-2021 and relaxations granted and time lines extended due to COVID-19.
Interest Equalization Scheme on pre and post shipment rupee export credit has been extended by one year i.e. upto March 31, 2020.
- Line Ministries have notified various sectoral incentive packages, such as Production Linked Incentive Scheme (PLI) by Ministry of Electronics and Information Technology (MeitY) and PLI Scheme by Department of Pharma for Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs).
- Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase FTA utilization by exporters.
- A comprehensive “Agriculture Export Policy” is under implementation to provide an impetus to agricultural exports related to agriculture, horticulture, animal husbandry, fisheries and food processing sectors.
- Promoting and diversifying services exports by pursuing specific action plans for the 12 Champion Services Sectors.
- Promoting districts as export hubs by identifying products with export potential in the District, addressing bottlenecks for exporting these products, supporting local exporters/manufacturers to generate employment in the District.
- Strengthening eco-system for adoption / implementation of mandatory technical standards for goods, services and skilling.
- Energising Indian missions abroad towards promoting our Trade, Tourism, Technology and Investment goals.
- Package announced to support domestic industry, including through various banking and financial sector relief measures, especially for MSMEs, which constitute a major share in exports.
The shrinkage in India's exports and the contraction in industrial production was a fallout of the lockdown imposed across the nation to curb the transmission of coronavirus. The Indian economy, ahead of the COVID-19 jolt, was also reeling under a prolonged slowdown.
(With PIB inputs)
(The above story first appeared on LatestLY on Sep 16, 2020 06:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).