COMMENTING on the July 2011 trade data, Mr Ramu S. Deora, President of Federation of Indian Export Organisations (Fieo), said that the growth in exports, considering the numerous challenges, is indeed spectacular and is a measure of the entrepreneurial skills of Indian exporters, coupled with their aggressive intent of diversification both at the product and country level.
Acknowledging that the government too had played a part in the feat through its market-linked incentives, the Fieo chief said that the growth of 81 per cent in exports, on a not-so-low base of July 2010, was unheard of in the recent history of Indian exports. He complimented the exporters of engineering goods, gems and jewellery, readymade garments, manmade yarn, cotton yarn fabrics, chemicals, electronics and others for chipping in to bolster the growth.
According to the Fieo chief, a comparison of the export figures of the last four months of 2011 with the same period of 2010 showed that the country was adding around $10 billion, resulting in $26-27 billion in exports every month.
Mr Deora added that imports too were increasing, with a trade deficit of $42.7 billion in the first four months, thus projecting a fiscal deficit of $125 billion in 2011. Therefore, "the government must give a boost to exports to bridge the deficit", he stressed.
Drawing attention to the challenges facing Indian exports in view of the recent global developments, the Fieo President said these could not be ignored as they would have serious bearings on the country's exports in the coming two quarters.
With regard to the problems on the domestic front, i.e. the hike in interest rates for exports and uncertainty over continuance of the DEPB scheme, the Fieo chief, while admitting that it had further accentuated the problem, apprised that both issues had been brought to the notice of the Finance and Commerce Ministries, who need to quickly act on them to lessen the discomfiture of exporters.
He felt that exports would see a dip in Q3 and Q4.
Source : Exim News Service - MUMBAI, Sept. 11
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