Exports down, time for govt. to stop dilly-dallying

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Bikky Khosla | 02 Dec, 2008
I think enough has been said but nothing has been done. As exports for October 2008 dipped by 12 percent owing to sluggish consumption in nations experiencing a slowdown, the government is yet to come up with a package to help exporters tide over the current credit crisis and weak global demand. I really wonder when our authorities are going to wake up and feel the plight of the exporters and act.

Every official in the Commerce Ministry seems to be engaged in giving sound bytes to the media on the fallout and effects of global slowdown on our merchandise exports, but none is able to give an answer to what the government is doing or will do to help the exporters.

Exporters are feeling the heat from decline in export order and high costs of transaction and if some measures are not put in place immediately, the situation is likely to worsen in the months to come.

Is it a tall order to ask the authorities to bring the export finance at less than five percent as is the worldwide norm? On one hand we take pride in saying that our country's think-tank and bureaucrats are the best in the world, on the other, I wonder does it really take so much time just to comprehend that the income-tax exemption benefit to all exporters must be restored at a time when they need it most - that is now? When will measures like restoration of interest subvention scheme and increased duty drawback rates be announced? I think it's nothing but dilly-dallying, which has to stop at once.

Yes, the recently announced measures like extending the period of entitlement for pre-shipment and post-shipment rupee export credit will help exporters to tide over the gloomy situation to some extent, but these are inadequate measures. Instead of implementing measures in bits and parts, the government should announce a comprehensive package for exporters at one go.

Additionally, intelligence and operational failures in the recent Mumbai attacks that saw hundreds of casualties have hurt India's image as an economic power. As as our leaders make one insensitive remark after another, undeniably people will now hesitate to do business with India. And the aftermath of the attacks are already visible with foreign buyers canceling or postponing business visits to India. Since buyers of some sectors like garment, handicrafts, etc. need to see a model product before finalizing orders, canceling visits means nothing less than cancellation of orders.

Overall, the confidence of the Indian population in general and the exporters in particular is shaken on two accounts - on whether their leaders can keep them safe and also whether they are competent enough to provide them some relief when the market realities are not favourable.

Till now the government has shown no urgency in announcing the package for the exporters. God knows how much further loss we need to bear before the authorities wake up. So much for expecting our leaders to bail us out!