‘Govt ready to rework policy framework to boost exports’

Deepak Kumar  | The Dollar Business

The government has assured exporters that it was ready to rework the policy framework and take some concrete steps to boost India’s international trade, an experters’ body has said. “In view of the continuous decline in the exports during the past several months, a FIEO delegation had a meeting with the Finance Minister twice in August and September 2015. We advised him of the problems being faced by the exporters. We have learnt that there will be a decision taken on interest subvention scheme,” S C Ralhan, President of the Federation of Indian Export Organisations (FIEO), said at FIEO’s 50th Annual General Meeting held on Monday. “Commerce Minister Nirmala Sitharaman is keen to consider our proposals, and we will get some updates within a day or two,” he said. India’s shipments have fallen in ninth straight month in August 2015. As many as 23 out of 30 key product segments have witnessed a decline. During August 2015, exports fell by 20.66% to $21.26 billion from $26.80 billion in August 2014. Exports during July 2015 were valued at $13.38 billion. Total exports during April-August 2015-16 contracted to $111 billion, registering a decline of 16.17% from $132.5 billion during the same period last year. Ralhan highlighted some of the major issues faced by the exporters and said, “The cost of credit is the main challenge of Indian exporters. Liquidity is also the key concern. The government has to ensure that all the funds of the export sector are given in a fixed timeframe. The logistics cost of the Indian exports is very high and the government can look for providing transport subsidy.” India’s trade deficit during April-August 2015-16 was estimated at $57.5 billion, down from $58.2 billion during April-August 2014-15. On Monday, FIEO held a meeting with the Directorate General of Foreign Trade (DGFT) in an attempt to highlight these issues. Ralhan also emphasized the need for greater involvement of small industries to increase exports. He said that the domestic manufacturing has been static in the last decade and MSME exports have also declined. There is a need to boost domestic manufacturing to realise the full potential of Make in India campaign, he added.  

September 30, 2015 | 4:50pm IST.