Exporters should focus on markets in W Asia, Latin America: DGFT

Jaipur: Europe and the US are facing recessionary trends, that’s why people are postponing purchase of non-essential items like handicrafts, carpets and gems and jewellery.

Directorate General of Foreign Trade (DGFT) director general Santosh Kumar Sarangi said traditionally handicrafts and carpets exporters depended on these markets and with the economy there not doing well, exports had slowed down.

He, however, said exports to countries in West Asia, Latin America and Australia are increasing year-on-year. “The time has come now for exporters to explore and diversify their markets to reduce dependency on Europe and the US,” added Sarangi.

Sarangi also said the domestic market is doing pretty well and handicraft exporters do cater to the domestic demand. But for high-value products, for which they depended on overseas markets, now they should look at the domestic market.

Speaking on the one district one product schemes, Sarangi said the government is looking at possible funding support to address some of the logistics and infrastructure gaps which are possibly impending growth.

China-plus-one strategy adopted by companies in global markets has started benefiting exporters in India. Sarangi said, “If you look at engineering goods sector, that saw a 50% jump last year. Similarly, electronics goods exports surged by 50% last year. In the current year also, the electronics goods are growing at more than 50%. The engineering goods exports, which had a large base in 2021, are also growing well. That way China plus one strategy has been beneficial to India.”

Speaking on the increased raw material cost, Sarangi said the price rise was across the world and not India specific even though the trend continued for a longer period in the country.

He said, “Our exporters have been very competitive. That’s why the apparel and garmenting exports have done well with a growth of 11% from April-December period.”