Delay in announcement of the new Foreign Trade Policy (FTP) is hampering shipments as exporters are unable to take any long term positions in the absence of clear guidelines.
The government has yet to announce the new Foreign Trade Policy (FTP 2014-19) although six months of the current fiscal are over.
"The exporters are not taking any long term decision regarding their businesses. They are not clear whether the product in which they are dealing will get any kind of benefit or not in the new FTP. We are eagerly waiting for the new FTP," Federation of Indian Export Organisations (FIEO) President Rafeeq Ahemed said.
The FTP gives guideline to all export and import related activities. It is aimed at enhancing exports and using trade expansion as an effective instrument of economic growth and employment generation.
Ahmed said that banks have not only stopped giving interest subsidy benefit to exporters but have started recovering the subsidy amount given after March 31.
Sharing similar views, CII Export-Import Committee Chairman Sanjay Budhia said that India's exports growth is slowing down and on account of this, exporters want support.
"We are awaiting the announcement of the new policy. There is an urgent need to extend support to the exporters in order to make their product more competitive in the global market," Budhia said.
According to government sources, officials of the commerce and finance ministries are still discussing the contours of the new FTP.
Growth rate of India's exports slipped to 5-month low of 2.35 per cent in August at USD 26.95 billion, pushing up the trade deficit to USD 10.83 billion.
