Upcoming Budget can fillip exports growth further: FIEO

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Saurabh Gupta | 17 Jan, 2017
Chief of apex exporters body, Federation of Indian Export Organisation (FIEO), S C Ralhan has said that constant growth in country's exports for last few months is encouraging and he feel that the upcoming Budget 2017 can provide a further fillip to it.

FIEO chief, in his statement, said, "We think our request for an Export Development Fund in the Union Budget is well timed. The focus in such challenging times should be on marketing with proactive support from the government."

He said, "GST has to ensure a system which does not affect the liquidity of exporters both of input tax for manufacturers and final product tax for merchant exporters . The interest equalisation scheme has been very effective in cutting the cost of credit and should be extended to merchant exporters in this Budget."

"Looking at the continuous positive trend of growth in exports, we are on our course to achieve exports of about USD 270-280 billion during the current fiscal," he added.

Commenting on the December, 2016 Trade Data, Ralhan said that exports for the month of December, 2016 continued with its positive trend and touched the base of over USD 23 billion exhibiting a growth of 5.72 percent during the month. The overall exports for the period April-December, 2016-17 is also positive for the second time in a row showing a growth of 0.75 percent during the period.

FIEO Chief further added that the growth across sectors in 18 out of 30 major product groups, have not only been positive in December but sectors specially Iron ore have continued to show an overwhelming growth of well over 800 percent.

Other major sectors like Jute manufacturing, Oil Meals, Oil seeds, Coffee, Marine Products, Cashew, Engineering goods, Organic & Inorganic Chemicals, Drugs & Pharmaceuticals and Gems & Jewellery have also shown impressive growth contributing in a major way to the growth in exports during the month with few of them showing higher double digit growth for the first time in recent months. Mr Ralhan reiterated that Petroleum exports which has a major contribution in the exports basket has continued to growth with a positive growth of well over 8 percent.

FIEO President added that global sentiments have started showing positive signs and US Fed rate hike and demonetisation have very limited impact on exports. The labour intensive sectors like gems and jewellery, handicraft, marine and engineering have shown impressive growth.