Exporters seek government intervention as outbound shipments plunge

NEW DELHI: As outbound shipments plunged by 20.66 per cent in August, exporters today demanded immediate intervention by the government to design a roadmap to fight off adverse global conditions and demanded a raft of measures, including interest subvention, to revive exports.

Exporters' body FIEO President S C Ralhan suggested that Prime Minister Narendra Modi and Commerce & Industry Minister Nirmala Sitharaman "should intervene in the matter and have immediate consultation with export bodies and exporters to draw a roadmap for exports in such a challenging time".

Ralhan demanded measures like immediate reintroduction of interest subvention of 3 per cent for export sector, release of shipping bill for claim of MEIS (Merchandise Exports from India Scheme) benefits and utilization of MEIS scrip, increase in MEIS benefit to FMS/FPS level (Focus Product/Focus Market Schemes) to increase liquidity at the end of exporters.

Contracting for the ninth month in a row, India's exports plunged by 20.66 per cent in August to USD 21.26 billion, widening the trade deficit.

"We are in for a tough time, making it imperative for the government to work with the exporting community to sail through difficult waters of global trade," said engineering exports body EEPC India Chairman Anupam Shah, adding that there is no immediate hope for revival either.

The significant slump in country's exports is attributed to global slowdown and declining commodity prices worldwide.

In August 2014, the merchandise exports had amounted to USD 26.8 billion. The last time exports registered a positive growth was in November 2014, when shipments had expanded at a rate of 7.27 per cent.