Decline in exports an alarming situation: FIEO

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SME Times News Bureau | 18 Nov, 2014
Expressing disappointment over the exports figure of October, 2014, M Rafeeque Ahmed, President, Federation of Indian Export Organisations(FIEO) said that this is an alarming situation.

"While we were conscious of challenges in emerging global scenario, we expected at-least modest growth of single digit," said Ahmed in a press statement on Monday.

"Surprisingly, all our performing sectors, which were expected to bring a turnaround either exhibited negative or miniscule growth. While Engineering, Drugs and Pharmaceuticals, Gems and jewellery, Cotton and Man-Made Yarn, Carpets entered into the negative territory joining petroleum and plantation sectors, growth has moderated in Leather, Apparels and Marine Sector. This is an alarming situation," added FIEO chief, which needs to be analysed and addressed quickly before it is too late.

Ahmed said that Government should immediately re-introduce interest subvention on exports from April 2014 as banks have not only stopped passing interest subsidy to exporter specially MSME exporters thereby raising cost by 3 percent but also started recovering the same in absence of any communication from RBI or the Government.

He added that uncertainty over new Foreign Trade Policy should also be removed as exporters are in dilemma in doing their costing while contracting for new orders. At least the existing policy, suggested President FIEO, may be extended for a definite period preferably up to 31st March, 2015 or till new Policy is announced and implemented.

FIEO Chief suggested that the new Foreign Trade Policy should Focus on Marketing, Branding, e-Commerce, Services exports, Project exports, High technology exports. Far reaching changes in procedures are also needed to address high cost of doing business in India. Simplification, self -attestation, EDI connectivity, Risk Management System should be the main plank for reducing transaction time and cost.

Country's exports down 5.04 percent to USD 26.09 billion in October, 2014 than the level of USD 27.48 billion in same month in 2013, said official data release on Monday.

Imports during October were valued at USD 39.45 billion representing a growth of 3.62 percent over the level of imports valued at USD 38.07 billion in October, 2013.

Cumulative value of exports for the period April-October 2014-15 was USD 189.79 billion as against USD 181.23 billion registering a growth of 4.72 percent over the same period last year.

Cumulative value of imports for the period April-October 2014-15 was USD 273.55 billion as against USD 268.55 billion registering a growth of 1.86 percent over the same period last year.

This results the trade deficit for April-October, 2014-15 was estimated at USD 83.75 billion which was lower than the deficit of USD 87.31 billion during April-October, 2013-14.