Air Cargo Takes A Beating

The global slowdown impacted air freight and the tariff war between US and China only exacerbated the situation. Adding to the problems of freight forwarders were the protests in Hong Kong. So, what do the next few months bring for Indian exporters and freights forwarders?

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India’s exports in June went down 9.71 per cent, on a year-on-year basis, to $25.01 billion from $27.70 billion reported for the same month of last year, according to official data from the Ministry of Commerce and Industry. Nonpetroleum and non-gems and jewellery exports in June 2019 were $19.15 billion (it was $20.13 billion in June 2018) — a negative growth of 4.86 per cent.

“Cumulative value of exports for the period April-June 2019-20 was $81.08 billion as against $82.47 billion during the period April-June 2018- 19, registering a negative growth of 1.69 per cent in dollar terms," the ministry said.

Reports also stated that imports too, went down by 9.06 per cent to $40.29 billion in June from $44.30 billion in the corresponding month of 2018. Oil imports in June were $11.03 billion, which was 13.33 per cent lower, compared to $12.73 billion in June 2018. “Non-oil imports in June 2019 were estimated at $29.26 billion which was 7.34 per cent lower in dollar terms, compared to $31.58 billion in June 2018,” the ministry said.

Ravi Sehgal, Chairman, Engineering Export Promotion Council India (EEPC) was quoted saying that the “sharp drop in exports for June calls for an immediate intervention by government to help exporters in terms of competitiveness and dealing with trade barriers in world trade”.