While some experts are saying that the near 25% drop in exports should be viewed with caution not panic, the 28.5% drop in export of Engineering Goods is really alarming, said Federation of Indian Micro and Small & Medium Enterprises (FISME), an apex body for MSME associations.
India’s export tumbled 24.42 per cent in November as compared to same period last year. Total exports stood at USD 20.01 billion against USD 26.48 billion in November 2014, according to data released by the Ministry of Commerce & Industry.
Products exported by the MSME sector including engineering goods, gems & jewellery and petroleum products witnessed significant fall. The value of petroleum product exports fell 54 per cent to USD 2.16 billion; engineering goods by 28.57 per cent to USD 4.7 billion and gems & jewellery by 21.52 per cent to USD 2.89 billion.
“While we may always blame the meltdown in global steel prices, the recent imposition of safeguard duties, minimum prices etc. on steel products import etc. will only make the Indian products costlier in the global market. Authorities should seriously consider how to overcome this downward spiral in engineering goods exports,” said Debashish Bandhopadhyay, Policy Director, FISME.
An MSME exporter from Delhi said that one of the major reasons for this fall in export can be the world-wide recession and India’s increasing competitiveness in the global market.
He said that “Export ventures in India are not self-sustained as most of the products exported are not technology primitive products. The exported items are constituted of low tech engineering products, leather products, or readymade garments- most of them are manufacturing intensive products.”
He also asserted that North India is the manufacturing hub and there is no trade subsidy for the exporters there.
Another MSME exporter from the NCR region said, “The officials are never supportive for the exporters. Most of the problem is incurred when we require an extension of licence for our export practices. The officials often suggest us to acquire small licences which have high transaction costs. This reflects the bothered attitude towards the small exporters.
“If the exporters are fulfilling all the obligations, they should not be denied the export benefits on any ground,” he said.
He projected his annoyance for the lack of long term policies for the exporters. “The policies keep changing as per the officials which make our sustenance difficult,” he said.
Image Courtesy : Businessnonstop
