Is falling exports an indication that MSME exporters need support from the govt?
Updated: Nov 17, 2015 11:34:58am
New Delhi, Nov 17 (KNN) India’s merchandise export plunged yet again for the 11th straight month in a row indicating the government to announce export-incentive measures especially for the MSME sector which contributes nearly 40 per cent to the total exports from the country.
The exports contracted 17.53 per cent to USD 21.35 billion in October, against USD 25.89 billion in October 2014, according to the official data.
While exports of high-value petroleum products declined 55 per cent in October, engineering products by 6.3 per cent, and gems & jewellery by 7.56 per cent, only 21 items posted contraction in outbound shipments against 24 in September.
Also, the decline in exports decelerated from the 20 per cent fall in August and September each.
The trade deficit narrowed to USD 9.77 billion in October against USD 10.48 billion in September. This was the first time the deficit came down to a single digit in the current financial year till October.
Apex industry body for the MSMEs, Federation of Indian Micro, Small and Medium Enterprises (FISME), has been suggesting the measures to the government through representations to increase exports from the sector.
Some of the measures include - included Advance Licence period which has been reduced to 18 months; rigid provisions of the EPCH scheme; duty drawback scheme and more.
FISME, which has a network of around 750 MSME associations, recently had met with Union Commerce Minister Nirmala Sitharaman to apprise her about the constraints faced by the MSMEs responsible for the decline in exports. (KNN Bureau)
The exports contracted 17.53 per cent to USD 21.35 billion in October, against USD 25.89 billion in October 2014, according to the official data.
While exports of high-value petroleum products declined 55 per cent in October, engineering products by 6.3 per cent, and gems & jewellery by 7.56 per cent, only 21 items posted contraction in outbound shipments against 24 in September.
Also, the decline in exports decelerated from the 20 per cent fall in August and September each.
The trade deficit narrowed to USD 9.77 billion in October against USD 10.48 billion in September. This was the first time the deficit came down to a single digit in the current financial year till October.
Apex industry body for the MSMEs, Federation of Indian Micro, Small and Medium Enterprises (FISME), has been suggesting the measures to the government through representations to increase exports from the sector.
Some of the measures include - included Advance Licence period which has been reduced to 18 months; rigid provisions of the EPCH scheme; duty drawback scheme and more.
FISME, which has a network of around 750 MSME associations, recently had met with Union Commerce Minister Nirmala Sitharaman to apprise her about the constraints faced by the MSMEs responsible for the decline in exports. (KNN Bureau)
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