New Delhi, May 10 (KNN) There is a need to propel manufacturing and focus on enhanced marketing, services exports, e-commerce, hi-tech products and merchanting trade, according to the exporters body, FIEO, which added that the new foreign trade policy should initiate measures for competitive manufacturing, both for augmenting exports and substituting imports.
According the trade data released yesterday, India's exports grew 5.26 per cent in dollars terms in April 2014 from a year ago period, reversing two months of decline.
Imports declined 15 per cent in dollar terms, clearly indicating that industrial recovery remained elusive.
The trade deficit shrunk to USD 10.1 billion in April compared with USD 17.7 billion a year ago.
Exports were valued at USD 25.6 billion in April while India's imports were worth USD 35.7 billion, according to the official data released by the Commerce and Industry Ministry. Exports had contracted 3.2 per cent in March.
Reacting on the trade data released yesterday, President of Federation of Indian Export Organization (FIEO), Rafeeque Ahmed said that, “Second straight growth in Exports month-on-month basis augur well for the country.”
The new financial year has started on a positive note and we look forward to build on it. We are aiming for double digit growth in exports to keep trade deficits within manageable limit, said FIEO Chief.
Further FIEO also said that the target of new foreign trade policy should be to increase export to at least USD 750 billion by 2019. “This would require CAGR of 19 per cent per annum and would need major thrust on manufacturing. Growth of manufacturing sector, which has declined 3.7 per cent year-on-year in February, requires greater push for augmenting capacity and advance technology.”
The new foreign trade policy should initiate measures for competitive manufacturing in the country both for augmenting exports and substituting imports. It should also focus on services exports, e-commerce, hi-tech products, merchanting trade, branded exports and effective coordination with states, Ahmed added.
FIEO has been demanding to bring exports under priority sector lending so that credit availability to the sector with international benchmark rates. “Availability of electricity for MSME manufacturing with concessional rates is the need of the hour. Similarly extra efforts are required on the marketing front of Indian products globally,” he said.
Ahmed said that the recently released revised forecast of 4.7 per cent increase in global trade in 2014 and 5.3 per cent in 2015 also indicates that the projected growth in global trade is a very positive sign for Indian exports as the same has been a key factor in driving our exports. Further FIEO Chief added that we should aim at about 20 per cent increase in exports.