Sectoral Decline Added to Disappointing Exports Setting an Alarming Trend: President, FIEO

Expressing his disappointment over the exports figure of October, 2014, Mr M Rafeeque Ahmed, President, Federation of Indian Export Organisations(FIEO) said that while we were conscious of challenges in emerging global scenario, we expected at-least modest growth of single digit.

Surprisingly, all our performing sectors, which were expected to bring a turnaround either exhibited negative or miniscule growth. While Engineering, Drugs and Pharmaceuticals, Gems and jewellery, Cotton and Man-Made Yarn, Carpets entered into the negative territory joining petroleum and plantation sectors, growth has moderated in Leather, Apparels and Marine Sector. This is an alarming situation added FIEO chief which needs to be analysed and addressed quickly before it is too late.

Mr Ahmed said that Government should immediately re-introduce interest subvention on exports from April 2014 as banks have not only stopped passing interest subsidy to exporter specially MSME exporters thereby raising cost by 3% but also started recovering the same in absence of any communication from RBI or the Government.

FIEO President added that uncertainty over new Foreign Trade Policy should also be removed as exporters are in dilemma in doing their costing while contracting for new orders. At least the existing policy, suggested President FIEO, may be extended for a definite period preferably up to 31st March, 2015 or till new Policy is announced and implemented.