Early sign of revival of exports but long way to go: FIEO

New Delhi/Ludhiana, May 13, 2016: Reacting to the Trade Data for the month of April,2016, Mr S C Ralhan, President, FIEO said that downfall in exports has been arrested to some extent both in March & April,2016 and he hoped that exports will move into positive territory from June onwards. 14 out of 30 products, for which data has been released, are showing positive growth. Gems & Jewellery, Organic & Inorganic Chemicals, Plastic goods, Electronic goods have shown promising results which augur well for the future.

While decline in Imports is encouraging to manage trade deficit and it may help in giving a fillip to domestic manufacturing for which the figures points to a topsy-turvy path as reflected in IIP numbers. He re-iterated the need for all out support to make manufacturing competitive to boost exports and address employment challenges.

Mr Ralhan said that some of the recent initiatives like extension of MEIS benefit to all countries and thereby dispensing with landing certificate will add to the competitiveness while simultaneously reducing transaction cost. The revised threshold limit for status holders will enable many more companies to claim such status so as to get various non-fiscal benefits including expeditious clearance of import-export cargo.

However, he urged the Government to address the problem of simultaneous availment of EPCG and SHIS which has landed many exporters into problem for no fault of their own besides releasing of target plus benefits and incremental exports incentivization benefit for 2013-14.