Our Bureau New Delhi Feb. 13
Though latest foreign trade figures show rise in exports, India Inc. feels that the slow-down in shipments still remains a cause for concern and the Government needs to continue its support.
Sanjay Budhia, Chairman, CII National Committee on Exports & Imports, and Managing Director, Patton International Ltd, said that although the growth in exports was meagre, it indicates that exports are slowly and steadily gaining momentum. He said that continuation of this trend will help contain the trade deficit. But, for exports to become competitive with their counterparts, the Government should extend two per cent Interest Subvention Scheme to all sectors, he added.
He also said that the industry eagerly awaited the announcement of revamped 100 per cent EOU and SEZ schemes. Exporters body Federation of Indian Export Organisations suggested that the Government should support high-technology exports which contribute less than nine per cent to total exports. In Malaysia, high tech exports account for 45 per cent of the country’s exports while for Singapore and the Philippines the share is over 50 per cent, FIEO President Rafeeque Ahmed said.
Assocham expressed serious concerns and said that the deteriorating trade balance has been the main culprit behind pushing the current account deficit to unsustainable levels. According to the chamber, the worrying factor is that the trade deficit is widening due to import of oil and gold rather than import of capital goods. It has suggested that the Government should review the implementation of its industrial and trade policies to boost exports and industrial performance. (Source: The Hindu Businessline)