Describing as "disappointing" the data on March exports, the association of exporters on Wednesday called for ushering in a robust and competitive manufacturing in India to enable exports to bounce back.
"The recent exports figure has been quite disappointing. The declining trend which started in the latter part of 2014 has further aggravated in 2015," the Federation of Indian Export Organisations' new president S.C. Ralhan told reporters here.
"Negative growth in manufacturing in 2013-14 followed by a modest growth expected in 2014-15 did impact exports," he added.
India's merchandise exports in March at $23.95 billion took a major hit and were down 21 percent from the same month of last year. Goods exports fell in March for the fourth month running.
In the process, the country's trade deficit for March stood at its highest since November last at $11.87 billion, as against $10.95 billion for the corresponding month of the previous fiscal.
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"Most of our factories are working for eight hours against 24 hours earlier as orders from Europe have dried up," Ralhan said.
Lamenting that the cost of credit in the country continues to be high, Ralhan said: "The drop in key rates marginally by RBI has not lowered the borrowing rates and thus government has to re-introduce interest subvention (for exporters) of 3 percent immediately with effect from April 1, 2014."
In its blueprint for enhancing exports set out in the new Foreign Trade Policy 2015-20 unveiled earlier this month, the government has merged all the earlier export promotion projects under two plans - the Merchandise Exports from India Scheme (MEIS) and the Served from India scheme (SFIS) for services exporters.
"While the new foreign trade policy has come, the reduction of rates in MEIS and SEIS have hit exporters badly. The MEIS benefit should be restored at the same level as it existed under the earlier scheme at least for 2015-16," Ralhan added.
Further, as a way to increase India's visibility in overseas markets, the government should grant 100 percent reimbursement of stall charges to exporters for participation in trade fairs and exhibitions abroad, he said.
