Indias exports in distress, in need of immediate booster dose: EEPC

KOLKATA : EEPC India on Wednesday said that the country's exports are in a state of distress and need immediate measures like lower transaction costs, cut in interest rates and implementation of GST without further delay.

While India's engineering exports were to the tune of $70.7 billion with growth of 14 per cent in 2014-15, the new financial year 2015-16 started with a slump in overall exports falling by 13.96% to $22.05 billion for the fifth straight month in April 2015, as demand from key global markets remained subdued.

The engineering exports registered only 0.23% increase in the growth rate to $ 5.7 billion in the month of April 2015 over April 2014. "In the coming days the government should also focus on improving the policy framework to bring back the confidence of the exporting community in the turbulent global economic environment," EEPC India chairman Anupam Shah said.

He said overall, the new government at the Centre has been successful in enhancing India's economic stature in the international arena.

Shah also said that India's economic indicators have improved significantly in the last one year. During 2014-15, the economy has registered a growth rate of 7.4%, inflation is down to 5%, the current account deficit has fallen to within 1% of the GDP and the rupee has remained stable against the dollar. He also appreciated the Government's Make in India initiative for making the country a manufacturing hub.

Shah appreciated the newly announced Foreign Trade Policy as it recognises the global challenges faced by the export sector and also identifies the potential sectors which could emerge as winners in the next five years. He requested the Government to reintroduce the interest subvention scheme which according to him is required by the exporting community to compete and survive in the turbulent global economic environment.

Shah said the engineering industry needs a Technology Upgradation Fund so that the Indian exports can move up the value in the global supply chain of high-tech products. "We have been making this demand for quite some time now."

Bhaskar Sarkar, executive director, EEPC India, commended various initiatives of the new Government and congratulated on completion of their one year in office. He mentioned India's splendid display of its engineering and manufacturing prowess at the Hannover Messe during 13-17 April 2015, where India was the Partner Country. Led by Prime Minister Narendra Modi, Indian businesses showcased engineering and technological excellence before the global audience which was well appreciated.

Source : economictimes.indiatimes.com