Export

'Some export sectors doing well despite global headwinds'

NEW DELHI: Expressing confidence that impact of government initiatives to boost shipments will be visible soon, Commerce Minister Nirmala Sitharaman has said that some export sectors have done well despite global headwinds.

"Inspite of the headwinds, there are some sectors definitely performing. So the story is a mixed story. Month-on -month figures may talk about exports falling, but the story is not across the board. Some sectors are still managing to keep their growth story going," the minister told PTI.

She said that global headwinds have been so strong that month-on-month, the realisation from exports are not really happy.

The minister said depreciations of the currencies too are impacting exports.

"It is not just rupee versus dollar... every currency opposite us is depreciating. As a result, you really suffer. And if your crude and commodity prices have fallen, currencies are devaluing, your exports quantum may remain the same but your realisations suffer," Sitharaman added.

Sectors which are recording healthy growth include pharmaceuticals, plastic and linoleum and handicrafts.

Further she said that steps announced by the government to boost exports "do take time to yield results".

"There is a time lag between the decision taking time of the government and the results showing time at the ground. Last September, we came up with two major schemes... you need at least six months to gauge the impact," she said.

Sitharaman added that both -- 3 per cent interest subsidy scheme and extension of duty benefits under Merchandise Exports from India Scheme (MEIS) -- have been just launched late last year.

"By the time the rules and the money and everything goes through the bank, it does take a bit of a time. And for us to measure what impact does it have, it will take a while," she said.

Falling for the 15th month in a row, exports dipped 5.66 per cent in February to USD 20.73 billion due to contraction in shipments of petroleum and engineering goods amid tepid global demand.

Trade deficit, however, fell to near five-year low of USD 6.54 billion during February as imports too slowed down.

Thanks economics times exports News

Private sector drives Indian Defence exports
QUEPEM (GOA): While the indigenously-developed Arjun tank and light combat aircraft hogged limelight at the Defence Expo here, it is the smaller products and systems - mostly from the private sector -that are actually revving up Indian military exports.

From simulation systems to train naval navigators to bullet-proof equipment for western forces and specialist trucks for the United Nations, there has been a significant jump in Indian defence exports in the past year. Defence Minister Manohar Parrikar pegged this figure at Rs 2,000 crore, up from Rs 500-600 crore a year ago.

The share of the private sector is as high as 60% and several companies have made exports their focus as domestic defence orders had remained clogged up over the past 4-5 years. The actual jump in exports could be in the range of Rs 4,000-5,000 crore as several products under the aerospace category have been delisted from defence export laws and no longer require government clearances.

While delicensing measures and speeding up the clearance process have been responsible for this rise in exports, industry leaders say that a positive image of the country at the international level has also helped. "There is now a greater interest from other nations as Indian products are world standard and come at a good value.

Exports are still limited but at least there is an interest," said Vinod Dasari, managing director of Ashok Leyland. The company had recently sold ambulances to Kenya, high-powered trucks to the Thai army as well as mobility solutions for the UN Peacekeeping Force.

Smaller players like ARI, which focussed primarily on export of naval simulation systems in the past are now not only leveraging foreign orders but also looking at the Indian market for orders. "Global markets continue to prefer virtual training over live training. We have had orders in the recent past from the US, UK, South Korea and Japan," said Shravan Rewari, CEO of ARI Simulation. In the last three years, the company exported military systems worth Rs 150 crore and sees this as a major growth area.

Delhi-based bullet-proof equipment manufacturer MKU is the biggest Indian defence exporter and clocked over Rs 400 crore from exports in the last financial year. Exports account for 80% of the sales of the company and include, among others, orders from Germany for bulletproofing of a new generation frigate.

"We are planning to investRs 500 crore in the next 2-3 years to augment our infrastructure and set up production lines for electro optics. It is important for the soldier to not only be protected but also to remain connected," said Neeraj Gupta, managing director of MKU.

Thanks economictimes

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