Exports responding to positive global developments: FIEO

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SME Times News Bureau | 12 Mar, 2013
Expressing rejoice over increase in exports by 4.25 percent to $26.26 billion in February, registering positive growth for the second straight month, exporters' body FIEO Monday said that the recent growth is in line with our assessment.

This shows that Indian exports is responding to positive global developments, said Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed, in a press statement.

Ahmed said that the encouraging figure of employment in US for the last month, Japan return to growth, China's impressive export performance and better economic indicators for the emerging economies points to improving global sentiments.

He viewed that further focus is needed in terms of marketing to push exports.

"However, since we are much away from our targets fixed for 2012-13, we need to revisit our strategy for imparting competitiveness to exports while simultaneously pursuing aggressive marketing to realize better exports in 2013-14."

The FIEO Chief said expressed concern over high cost of credit and export transaction.

"Government needs to reduce the cost of credit for manufacturing in general and exports in particular. The Transaction Cost has to be brought down to the barest minimum for imparting competitiveness while marketing support will encourage MSME exporters to venture aggressively in the market," Ahmed said.

FIEO said that moderation in imports is a good sign and he hopes that the same will be responded by increasing IIP number in months to come. The contraction in imports will help to keep the trade deficit well below US$ 200 billion for the current fiscal.

Commenting on the export figures released today, Sanjay Budhia, Chairman, CII National Committee on Exports and Imports said that sme measures taken by the government played role in pushing exports.

"We are happy that some measures taken by the government is helping push up exports. We are eagerly awaiting the announcement of the Foreign Trade policy, where some important issues like SEZ, fiscal incentives, reducing cost of credit and transaction costs will help Indian exporters become more competitive.

We should also try to align MLFPS and FPS benefit to tough and big markets. This will encourage exporters to target high potential markets. Also these benefits may be provided to those tariff lines where growth in world trade is lower in relative terms. Also India should try to increase its share in high tech industries " said Budhia.