Impact of COVID-19 on Global Trade
The Global supply chains are getting affected due to Coronavirus outbreaks heavily. All the Importers-Exporters are coping with everyday problems of Global trade.
According to Prediction of World Trade Organization (WTO) Merchandise trade could fall down 13% – 32% in this financial year and It predicted the adverse effects of COVID – 19 outbreak on globalization and also said it may carry on for years also, like the 2008 financial crisis.
Unavoidable declines in import-export and it’s output have painful consequences for household and businesses with human suffering by the disease itself as per the report given by the WTO.
Mr Roberto Azevedo the Director of World Trade Organization described the situation very ugly, he said that the situation is the first health crisis and priority should be given to saving people’s lives.
He said trade would be the most important factor for the economic recovery after the crisis, keeping markets open & predictable would be critical in this situation.
It will take a long period for adjustment after this outbreak.
Steps taken by the Indian Government to support the exporters:-
The Global Economic has been adversely affected by Coronavirus Outbreak, It has impacted the majority of countries across the globe. The spread of corona in India affected various sectors of the economy.
Indian Government has been preparing strategies and action plans not only for business continuity but also to improve ease of doing business in the country.
Government of India issued following notifications and did the number of amendments in the export policies of the products which are necessary to fight against the Coronavirus to save the lives of citizens.
- Helpdesk operationalized by Directorate General of Foreign Trade (DGFT) for Import – Export issues in Covid-19 Outbreak – Notification issued by DGFT on 26th March.
- Advisory for non-charging of container detention charges on Import-Export shipments – Notification issued by Ministry of Shipping on 29th March 2020.
- Relaxation in documents procedure pertaining to foreign portfolio investors due to COVID – 19 outbreak – Notification issued by SEBI on 30th March.
- Foreign Trade Policy 2015-2020 extended for one more year till 31st March 2021 and relief measures announced for exporters – Notification issued by Ministry of Commerce & Industry on 31st March 2020.
- Due to extension in the FTP the Benefits schemes also extended for one more year includingMEIS Scheme (Merchandise Exports From India Scheme)
- Validity of RCMC (Registration Cum Membership Certificate) extended up to 30th September 2020 from 31st March 2020. – Notification issued by DGFT on 31st March 2020
- Scanned documents for pre-registration and registration under the European Union (EU) Generalised System of Preferences to be accepted – Notification issued by DGFT on 31st March 2020
- One-time Condonation under the EPCG scheme extended till March 31, 2021 – Notification issued by DGFT on 07th April 2020
- Basic Customs Duty and health cess are exempted on the following till 30th September 2020 – Notification issued by DGFT on 09th April 2020
- The Government has provided the number of relaxations and extension of various compliance deadlines etc. to address Covid-19 related to hardships of exporters
- Relaxations given for physical copy submission for availing benefits under TMA – Notifications issued by DGFT on 13th April.
- The Government set up the call centre to facilitate inter-state movement perishables in the time of lockdown – Notification issued by the Ministry of Agriculture & Farmers Welfare on 15th April 2020
- FDI Policy amended to curb opportunistic acquisition or the takeover of Indian companies, restrictions on entities of countries sharing border with India – Notifications issued by Department for Promotion of Industry and Internal Trade (DPIIT) on 18th April.
- Extension in the deadline for application initiating Anti-Dumping Sunset Review Investigations by the Ministry of Commerce & Industry on 21st April 2020.
- Government has extended the Validity of the license received under various incentive schemes.
India has exported millions of tablets of Anti Malaria Drug hydroxychloroquine to 40 countries and gifted 5 million tablets to number of nations to help the world in fighting with COVID – 19.
Mr Piyush Goyal , said India’s exports are recovering fast and will be reflected in the data for June, exports are touching almost 85% – 88% corresponding last year.
Read More: Freight Forwarding: Streamlining Global Logistics
Apart from that, if you are interested to know about Innovative Solutions to Singapore’s Garbage Disposal Problems then visit our World category.
