FIEO Calls for Transfer of MEIS and Extension of Interest Equalization Scheme, Freight Support to Meet High Rates

[FIEO Press Release FIEO/PUB/PR/41/2021-22 dated December 14, 2021]

The FIEO President said that the top sectors, which performed impressively during the month were Petroleum Products, Engineering Goods, Organic & Inorganic Chemicals, Cotton Yarn/Fabrics/Made-ups, Handloom Products etc., Electronic Goods, Marine Products, Plastic & Linoleum, Man-made Yarn/Fabs./made-ups etc., Leather & leather products and RMG of All Textiles. Out of these, many of them were labour-intensive sectors contributing majorly to the exports basket during the month, which itself is a good sign, further helping job creation in the country. However, imports yet again clocking over USD 52.94 billion during the month with a very high growth of 56.58 percent, is a point of concern and should be analysed, said Dr A Sakthivel.

The FIEO Chief is of the view that though the government has announced a slew of measures to support exports, the need of the hour is to soon announce extension of the interest equalisation scheme and allow transfer of MEIS. Some of the other major issues, which requires the attention of the government are necessary steps with an option to support the sector in case of spread of new variant, Omicron of Covid-19 pandemic, augmenting the flow of liquidity & empty containers and establishing a regulatory authority to seek justification of imposition of various charges by the shipping lines, also needs urgent intervention of the government, besides freight support to all exports till 31st March 2022, as freight rates have skyrocketed and are not likely to come down in near future.