S C Ralhan, President, Federation of Indian Export Organisations (FIEO) has shown serious concern over the falling export/import percentage in the month of March 2016 which witnessed a dip of (-) 5.47 per cent in exports and (-) 21.56 per cent in imports.
Ralhan said that continuous slowdown in demand in global markets and liquidity problem are responsible for the double-digit negative growth in exports during the last fiscal 2015-16. He further pointed out that almost all major export sectors, including leather & leather products, RMG (ready-made garment) products, gems & jewellery, etc. have either marked a negative growth or shown a declining trend in their growth during the last three months of the fiscal year. These sectors together account for over two-third of India’s total exports. Besides this, ambiguity on policy front, ease of doing business and high cost of credit played albeit a smaller role in plunging exports, he added.
Also Read – WTO warns of sluggish trade growth in 2016; FIEO worried
Looking at ways to overcome the problems, FIEO Chief has urged the Government of India for investment-linked benefits for MSME exporters, Line of Credit or Buyers’ Credit to boost exports, Advance Ruling Facility in DGFT, Export Development Fund and changes in MAI Scheme besides making Iran as a ‘Focus Market’. He has also asked to announce exports as ‘priority’ sector and restoring of Interest Subvention Scheme to exporters to arrest the fall in exports.
