'Govt needs to address exports decline in Budget'

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SME Times News Bureau | 14 Jan, 2013
Reacting to fall in exports in the month of December to 1.92 percent to USD 24.87 billion, an export council has said that the government should take some steps in the Budget to boost exports.

Apparel Export Promotion Council (AEPC) Chairman A Sakthivel, in his response to the trade data released on Friday for the month of December 2012, said the government should take some steps in the Budget to boost shipments.

He stated that exports have been constantly falling since April 2012, "we have communicated concerns of the garments industry to the government," he added.

He said, "Garments industry has asked for separate chapter for export sector this will help to get the credit at low interest rate leading to the boosting of our exports, we have also proposed for reducing customs duty to flat 5 percent on synthetic/blended fabric in 2013-14 onward."

"The Government should also provide 5 percent incentive under Market Linked Focus Product Scheme for the exports made to other than traditional markets because exports to non- traditional markets have been growing and it needs the adequate support at right time."

Chairman AEPC further stated that, with a view to enhance the export-competitiveness of the Indian textile and garment industry, mitigating the impact of imminent recession in major markets is the need of time.

However, M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO), said that the arrest of decline in the month of December, 2012 to less than 2 percent for exports is little encouraging and FIEO is hoping for positive development in the balance months of the current fiscal.

However, Ahmed admitted that even reaching last year exports seems to be ambitious in the present situation.

The decline in exports, observed Ahmed, is on account of global slowdown including contraction in emerging economies and with the exception of few countries, like China, rest are in the same boat as India. However, the contraction in IIP data (0.1 percent in November) also has its share in exports decline added FIEO Chief.

Ahmed expressed his concern over widening trade deficit which has already touched USD 147 billion and may cross USD 200 billion in 2012-13.

"Such high deficit will put pressure on current account and will add to volatility of Indian Rupee," he added.