FIEO seeks adequate liquidity, release of all export benefits
The Federation of Indian Export Organisations (FIEO) has said a concerted strategy would be required to achieve the goods exports target of $400 billion for 2021-22 set by the Commerce Ministry. Exports should be treated as national priority, providing adequate liquidity and releasing all export benefits for achieving the target, it said.
“Liquidity should be addressed by encouraging banks to lend to the export sector and all export benefits should be released immediately including drawback, MEIS, GST and RoDTEP (Remission of Duties and Taxes on Export Products) to name a few,” according to an official release circulated by FIEO.
This will help in making exports profitable because if there is a further delay in refund, exporters profitability will be wiped out with increasing interest burden, the statement explained.
FIEO chief S K Saraf said the $400 billion milestone for exports in the on-going financial year reflected the optimism and confidence not only of the government but equally of the trade and industry.
“While facing numerous challenges in manufacturing and logistics, the recent export growth has been more than satisfying and shows that the industry is better equipped to handle the second wave with minimum of disruptions…. the order booking position of exporters is extremely encouraging,” he said.
FIEO is also concerned over the rising prices of domestic inputs and suggested reduction in import tariff to soften prices. He urged the shipping companies to rationally increase freight as all stakeholders are facing the same problem and with recovery in sight, all will sail together.
India’s exports during April-March 2020-21 declined by 7.4 per cent to $290.18 billion compared to $313.36 billion in 2019-20, as exports had fallen steeply in the initial months of the fiscal due to the Covid-19 lockdown and halt in manufacturing activities. Exports in April 2021 jumped to $ 30.21 billion, an increase of 197.03 per cent over $ 10.17 billion in April 2020, and an increase of 16.03 per cent over $ 26.04 billion in April 2019.