Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed concern over 12 per cent fall in India’s exports in October 2008.
The association has urged the government to come out with an exporters’ package to help Indian exporters to tide over the current credit crisis and weak global demand in the international market.
Amit Mitra, secretary general, FICCI said: “12 per cent fall in exports is indeed a very steep one and our goods exports constitute around 18 per cent of our GDP. This is bound to have significant impact on our growth for the next quarter. Unless the government comes out with a complete package for the exporters immediately, we may see further fall in our exports in the current year.”
FICCI welcomed the government’s recently announced measures for exporters that include extending the period of entitlement for pre-shipment and post-shipment rupee export credit.
However, the association has expressed its dissatisfaction over the inadequate measures. They have asked for other measures like restoration of interest subvention scheme till March 2009, increased duty drawback rates etc, that exporters are looking at to help them tide over these crises.
FICCI has also asked the government to immediately announce a comprehensive exporters’ package instead of implementing measures in a piecemeal manner.
Mitra further said: “With the recessionary conditions in advanced economies and growth in the emerging economies weakening exporters are loosing out orders and diversification of exports would not yield much result. In such a precarious situation, it is important that the government stimulates the demand in domestic economy also so that the exporters could focus on domestic front in the coming months.”