Govt should not withdraw stimulus: Industry

NEW DELHI: India Inc today expressed satisfaction over turnaround in exports in November, but cautioned against withdrawal of stimulus packages to exporters.

"The growth (in exports) is partly because of revival in the US and some of the European economies ... the premature withdrawal of the stimulus will jeopardise the future of exports, if this is done before the turnaround in the developed countries," Ficci Secretary General Amit Mitra said.

Echoing the view, Assocham said the growth in exports in November is good but this is not the right time to start rolling back stimulus packages. "The government should not withdraw the stimulus till the western markets for India's export start showing sustained revival."

Apex chamber CII said the growth in exports shows growing competitiveness across sectors. "The reduction of transaction costs is expected to lead to further growth," CII Director General Chandrajit Banerjee said.

India's exports grew over 18 per cent to touch USD 13.2 billion in November, reversing the downtrend seen in the past 13 months in a row due to shrinking in demand in major western markets.