Showing serious and legitimate concern over the trade date for the month of the March, 2016 which has shown a modest decline of -5.47 percent in exports and a large decline in imports of -21.56 percent, S C Ralhan, President, Federation of Indian Export Organisations (FIEO) said that continuous slowdown in demand in global markets and liquidity problem has in a major way being responsible for the double digit negative growth in exports during the last fiscal 2015-16.
What has become of even more concern is the fact that the decline during the last quarter of FY’ 2015-16 was on a low base as exports declined in all the three months of the quarter.
FIEO Chief said that almost all major sectors of exports including Engineering Goods, Petroleum products, Leather and Leather Products, RMG of all Textiles, Gems & Jewellery, Drugs & Pharmaceuticals and Organic & Inorganic Chemicals have either shown a negative growth or have shown a declining trend in their growth during the last three months. These sectors together accounts for well over two third of India’s exports.
Moreover, uncertainty on policy front, ease of doing business and high cost of credit did play albeit a smaller role in decline.
S C Ralhan expressed his serious concern over the declining trend in exports from December 2014 onward. Further showing concern on the data, FIEO Chief indicated that Indian exporters need immediate attention.
President FIEO asked for declaring exports as priority sector and restoring of interest subvention scheme to exporters to arrest the fall in exports. FIEO Chief also urged the government for Investment linked benefit for MSME Exporters, Line of Credit or Buyers’ Credit to boost exports, Advance Ruling Facility in DGFT, Export Development Fund and changes in MAI Scheme besides making Iran as a Focus Market.
