Mumbai, NFAPost: India must address the rising cost of commodities and escalating logistics cost that is impacting the micro, small and medium enterprises (MSME) in its forthcoming foreign trade policy.
MVIRDC World Trade Center Senior Director Rupa Naik said the rising prices of metals, plastics, fuel and other raw materials along with shortage of shipping containers have been adding to the woes of the MSME sector.
“The Ministry of Commerce and Industry is likely to roll-out its new foreign trade policy for a five-year period effective from April 1 in a bid to boost India as a leader in international trade,” said Mubai-headquartered trade facilitating organisation Senior Director Rupa Naik.
She also pointed out the need to address the inflationary trend in commodity prices needs to be addressed as India’s MSMEs, which contribute over 48% of the country’s exports, are operating on too thin a margin to absorb this cost pressure.
Also, the forthcoming foreign trade policy should provide renewed thrust on 235 commodities that witnessed strong growth in exports despite the challenging world economic environment amidst the pandemic.
In the calendar year 2020, India’s trade surplus across select 235 commodities grew to $33 billion from $12 billion in the previous year as imports declined by 14% to $27 billion, while exports surged 36% over last year, as per the data analysed by World Trade Center.
Out of the 235 commodities, pharmaceuticals including medical equipment and agro-products are the largest categories accounting for 22% each with an export value of $13.4 billion and $13.2 billion, respectively.
Metals and chemicals stand at third and fourth positions accounting for 18% and 11% respectively, out of these 235 commodities.
Established in 1970, MVIRDC World Trade Center facilitates exchange of trade missions with foreign countries, hosts exhibitions of Indian as well as foreign products to boost India’s presence in international trade as well as organises interactive meetings with top officials of consulates.