Sectoral decline, disappointing exports setting an alarming trend: FIEO President
Updated: Nov 19, 2014 03:51:55pm
New Delhi, Nov 19 (KNN) Expressing his disappointment over the exports figure of October 2014, President, Federation of Indian Export Organisations (FIEO), M Rafeeque Ahmed has said that notwithstanding the challenges in the emerging global scenario, they expected at-least a modest growth of single digit.
Surprisingly, all our performing sectors, which were expected to bring a turnaround either exhibited negative or miniscule growth, he said in a release of November-17.
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 the FIEO chief, which needs to be analysed and addressed quickly before it is too late.
Ahmed said that the 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 per cent but also started recovering the same in absence of any communication from RBI or the Government.
FIEO President 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 may be extended for a definite period preferably up to 31st March, 2015 or till new Policy is announced and implemented, he said.
The new Foreign Trade Policy, according to him 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, he said. (KNN/ES)
Surprisingly, all our performing sectors, which were expected to bring a turnaround either exhibited negative or miniscule growth, he said in a release of November-17.
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 the FIEO chief, which needs to be analysed and addressed quickly before it is too late.
Ahmed said that the 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 per cent but also started recovering the same in absence of any communication from RBI or the Government.
FIEO President 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 may be extended for a definite period preferably up to 31st March, 2015 or till new Policy is announced and implemented, he said.
The new Foreign Trade Policy, according to him 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, he said. (KNN/ES)
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