Several proposals have been made to the govt to boost exports; but not much done so far: FIEO

New Delhi, Feb 16 (KNN) The entire global economy is witnessing a slowdown but our main concern is the slowdown in the domestic industry due to several reasons, said Ajay Sahai, Executive head, FIEO.

He said that several proposals have been submitted to the government to boost exports, but nothing has been done in this regard.

India's exports in January fell 13.6per cent from a year earlier to USD 21.07 billion - declining for the 14th consecutive month - while a contraction in imports narrowed the trade gap to an 11-month low. 

Imports fell 11per cent to USD 28.71 billion, leaving a trade deficit of USD 7.63 billion, provisional data released by the Ministry of Commerce & Industry showed. 

Sahai said that similar patterns are being witnessed in most of the economies following the global slowdown.

China's exports dropped 11.2per cent on year to USD 177.5 billion in January while imports plummeted 18.8per cent to USD 114.2 billion. 

Sahai said that the situation for MSME exporters is quite difficult as the high logistic and transaction costs. He further opined that the fall in import of capital goods and raw materials is also not good for the industry. 

FIEO head, however, acknowledged that the government has taken several measures like extension of MEIS etc to help the domestic industry.

Meanwhile, reacting to the trade data for the month of January 2016, exhibiting 14 months of continuous decline, S.C.Ralhan, President FIEO said, “We may end up with exports of around USD 260 Billion in 2015-16. However, looking at the exports globally, we are no exception as even leading exports nations have witnessed more or less the similar trend.”

Ralhan said that the decline in manufacturing growth and more particularly double digit decline in capital growth manufacturing should be viewed seriously as the same with decline in imports of key raw material does not augur well for future exports as well. President FIEO said that 17 out of 30 sub-sectors are in red in January, 2016 as against 15 out of 30 in December, 2015.

FIEO Chief said that the problem of transfer of shipping bill, verification of MEIS, delay in release of duty drawback and interest subsidy has seriously affected the liquidity of exporters and government should ensure that the benefits announced through policy measures reach the exporters. (KNN Bureau)