FIEO Pleads for Restoration of Interest Subvention, Export Refinance

Mr M. Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) while commenting on the macro- economic data stated that a fall in oil prices and softening of prices in commodity markets as per reports may result in a surplus CAD almost after 32 quarters of deficit.

FIEO Chief stated that this lower oil price trajectory is a significant supply shock for India, with positive implications across macro variables such as real income improvements, falling inflation and subsidy bills and improving external accounts but it could also have negative repercussions that is, if the decline in oil prices is due to weaker global growth outlook, like in 2009, the impact from declining exports, including decline in petroleum exports, could partially offset the positive influence on the domestic economy.

President, FIEO said that Interest subvention and export credit refinance should not be undermined in view of projected improved CAD and the export sector would need a level field to compete in the global market at a time when demand is slowing.