Government should engage with stakeholders, reintroduce interest subvention & support export marketing to steer exports: Ralhan

Ludhiana, July 15, 2015: Expressing his disappointment over continuous seven months decline in exports, Mr S C Ralhan, President, Federation of Indian Export Organisations (FIEO) said that while soft external demand is the main cause but the slowdown in manufacturing (manufacturing growth in May was a moderate 2.2%), strengthening of Indian Rupee against USD at a time when other currencies have weakened substantially, high cost of credit and increasing logistics cost contributed in no less measure. President FIEO said while external conditions may improve from September, yet the domestic constraints have to be addressed to bring exports back on track.

FIEO Chief said that most of the sectors which have exhibited a decline in the month of May,2015 have shown even deeper negative trend in June, 2015. One of the reasons for the same was exceptional performance by sectors such as petroleum products, engineering, leather & leather products, marine products where they exhibited a growth varying between 15% - 40% in June,2014. The base effect will turnout to be in our favour from September, 2015.

Mr Ralhan urged the Government to engage with exports organisations to discuss measures which should be undertaken to boost exports. The Interest Subvention for exports should be released immediately as the inordinate delay is dampening the spirit of exporters which is otherwise low also due to global conditions. President, FIEO reiterated that Government should focus on aggressive marketing, which is pursued by China, to showcase Indian products and the fiscal support will go a long way in increasing exports particularly of MSME whose share remained around 40% for last few decades.