New Delhi, June 25 (IANS) As chorus grows for the boycott of Chinese products, the Federation of Indian Export Organisations (FIEO) has said that immediate restriction on imports from the country may not be feasible as India needs to get its supply chain in place.
In a video conference with the media here, FIEO President S.K. Saraf said that India has to be cautious while banning or restricting import of Chinese goods.
FIEO Director General Ajay Sahai was of the view that that a knee-jerk reaction would not be good and the country needs to improve its supply chain infrastructure to lower its dependence on imports.
He also noted that there is a major requirement for ease of starting businesses in the country in order to strengthen the manufacturing scenario.
On the exports outlook, FIEO said there may be a 10 per cent decline in exports from India this fiscal.
In a statement, it said that Indian exporters are receiving lots of enquiries from countries where anti-China sentiments are high. Many of these enquiries have been converted into orders, as well, said a FIEO statement.
“However, the demand in employment intensive sectors like gems and jewellery, apparels, footwear, handicrafts, carpets is still a challenge. We do not expect much improvement in demand.
“Therefore, we expect around 10 per cent decline in India's exports in the current fiscal. In case of a second wave, the contraction may reach 20 per cent,” it said.
The export recovery is likely to be led by pharmaceuticals, medical and diagnostic equipment, technical textiles, agri and processed foods, plastics, chemicals and electronics. Since the domestic demand for petroleum products is extremely low, there may be increasing exports of petroleum as well for such companies to sustain in business, it said.