FIEO seeks govt support to reverse declining exports

MUMBAI: The Federation of Indian Export Organisations ( FIEO) said here today that the government needs to lend more support to reverse the declining exports trend as seen in the March 2015 trade data.

Trade data of March 2015 showed a decline of over 21 per cent in exports and close to 13.5 per cent in imports. The continuous demand slowdown in global markets and liquidity problem has been responsible for double digit negative growth in exports during the last quarter of the fiscal 2014-15, FIEO President S C Ralhan said in a statement issued here.

"What is of even more concern is the fact that decline during the last quarter of FY' 2014-15 was on a low base as exports declined during all three months of the quarter," he said, in the statement.

The FIEO chief said that almost all major sectors of exports including engineering goods, petroleum products, gems & jewellery, drugs & pharmaceuticals and organic & inorganic chemicals showed a negative growth, with almost all showing negative growth during the last three months. These sectors together accounts for over two third of India's exports, he said, in the statement.

Moreover, uncertainty on policy front and high cost of credit did play albeit a smaller role in decline, he said.

Ralhan expressed serious concern over the declining trend in exports from December 2014 onward, adding that Indian exporters need immediate attention, according to the statement.

Ralhan asked for declaring exports as "priority sector" and restoring the interest subvention scheme for exporters to arrest the fall in exports, the statement said.