Anand Sharma to meet Pranab over export challenges

Anand Sharma holding the stakeholder consultation with Export Promotion Councils, in New Delhi on May 17, 2012.

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SME Times News Bureau | 11 May, 2012
Commerce and Industry Minister Anand Sharma will meet Finance Minister Pranab Mukherjee to discuss the major economic issues that are currently threatening prospects of the Indian export sector for the coming months.

"I will be talking to the Finance Minister on these issues. The government will do everything within its power to ensure that the exports momentum is not lost," Sharma said Thursday after a meeting with the stakeholders and industry representatives of various export sectors.

Due to the ongoing Eurozon crisis and more recently sharp fall in value of the rupee, there has been a widespread concern that exports could be seriously impacted in the coming months. In addition, exporters have been reeling under the pressures of high interest rates for a long time.

However, the constraints of resources will also have to be kept in mind, Sharma added, stressing on a taking a balanced view of the situation and work out a solution that ensures that import bill does not outpace exports.

The trade minister also stressed the need to work out a deal with focus on labour-intensive sectors where the concerns had a clear social dimension on job creation.

According to foreign trade data released recently, there is a sharp decline in exports of some SME dominated sectors, with the gems & jewellery sector witnessed the sharpest fall, with 25.7% contraction in overseas shipment during the month, followed by readymade garments that suffered 9% fall in exports during the same period.

The leather sector also saw muted demand in April, growing at a slow pace of 3.2%, while exports from electronics and plastic sector registered only 5.4% and 2.7% growth, respectively.

Speaking at the event, Apparel Export Promotion Council Chairman A. Sakthivel said that the government should look urgently on reduction of transaction cost and lowering of interest rates to boost exports.

Recently, exporters' body FIEO had asked the Centre for continuance of export benefits with increased entitlement and immediate re-introduction of Interest Subvention.