FIEO concerned over trade deficit, dull outlook on exports

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SME Times News Bureau | 16 Apr, 2012
Exporters' body FIEO has urged expressed concern over the nation's growing trade deficit and urged the Centre to form a committee to study the export-import trends.

"The growing trade deficit of $185 billion is a cause of concern and it will further increase our current account deficit," the President of the Federation of Indian Export Organisations (FIEO), Mr M. Rafeeque Ahmed, said in a statement.

On achieving US$ 300 billion export target for the 2011-12, he said that achieving such stupendous target has been the outcome of market diversification strategy of the Commerce Ministry and deeper penetration through various Free Trade and Comprehensive Economic Partnership Agreements.

He also thanked government for facilitating exports to Iran recently, which, he said, can easily take India's exports to the middle east country to US$ 10 Billion by 2014.

The FIEO chief, however, cautioned that downward revision of world trade forecast to just 3.7% in 2012 by WTO two days back points to a challenging times ahead. He exuded confidence that RBI would take bold decision of sharp cut in key policy rates in the Credit Policy to be announced next week.

Keeping this in view, he viewed that the RBI should take bold decision of sharp cut in key policy rates in the Credit Policy to be announced this week.

He also demanded immediate re -introduction of interest subvention and availability of pre and post shipment credit in foreign currency to exporters on priority basis.