Export sector needs a special push from RBI: EEPC

KOLKATA: While RBI maintaining a status quo on the policy interest rates would have come as a relief to the stock markets, Governor Dr Raghuram Rajan should have given a special dispensation of interest rates to exports, which are key to maintaining stability on the external sector parameters like current account deficit, said chief of engineering exporters' body, EEPC India Mr Anupam Shah.

As clearly pointed out by RBI the outlook for global growth remains uneven and modest. Under thCese circumstances, it becomes extremely difficult for exporters to stay competitive in the face of weak demand, Mr Shah said.

He said with persistent double digit inflation at the CPI level, the inputs costs for the exporters, including the wages are increasing. While the exports did pick up from the second quarter of this fiscal, it is doubtful whether the growth could be sustained..The trend from November is again becoming weak making it imperative for the government and RBI to support the exporters by way of lower interest rates.

Besides, the long-standing demand of the priority sector status to the exporters in lending is yet to be met, he said. Such measures could bolster the exports again and cushion the country from slippages in the current account not by import compression but increased exports.