FIEO looking at export friendly measures to sustain growth rate

Source: The Hindu Business Line, Mar 16, 2017

Kochi: Buoyed by last month’s double-digit export growth, the Federation of Indian Export Organisations (FIEO) is looking at more export friendly measures to sustain the growth rate in a challenging global environment.

“We have to look into the exchange rate closely to maintain the growth rate on account of the fact that the rupee is all set to appreciate against major currencies and it will affect India’s export competitiveness,” Ajay Sahai, Director General and CEO, FIEO, told BusinessLine.

Asked whether FIEO has suggested any exchange rate support measures, Sahai said: “Since rupee is expected to appreciate as compared to our competitors’ currencies, the government may provide additional incentives to exporters to offset losses on exchange front.”

Sahai, who was in Kochi for an official meeting, said the government needs to look into the

Interest Equalisation Scheme for merchant exporters, who continue to contribute 30 per cent of the country’s exports. At present, only manufacturers are availing themselve of this benefit and it should be extended to other sectors as well, he said.

On the achievement of 17 per cent growth rate in February, he said that this is for the first time that the country has achieved a double-digit export growth after more than three years, thanks to firming up of commodity and metal prices.“The trends are very encouraging especially at a time when major competitors like China, Thailand, Japan posted a negative growth”, he said.

 

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