Worried about sliding export growth, the apex body of exporters the Federation of Indian Export Organisations has said the Government must advise banks to provide adequate credit to exporters.
“Whenever there is a decline in exports banks ask their credit departments to go slow on credit. Just like the agriculture sector, banks also need fixed credit schemes for exporters,” M. Rafeeque Ahmed, President, FIEO, told presspersons here.
India's exports in November shrunk 4.17 per cent year-on-year for the seventh month in a row to $22.2 billion. Exports in November 2011 stood at $23.2 billion. Imports grew by 6.35 per cent to $41.5 billion in November, leaving a trade deficit of $19.28 billion.
During April-October 2012-13, the country's shipments shrunk by 5.95 per cent to $189.2 billion. Imports during the period dipped by 1.58 per cent to $ 318.7 billion.
The country's import bill has increased due to a jump in petroleum imports. During the first eight months of this financial year, the trade deficit stood at $129.5 billion.
Ahmed said free trade agreements and comprehensive economic partnership agreements have facilitated more imports than exports from India.
“We need to revisit strategies with countries where FTA/CEPA have been signed. One reason for the lacklustre performance of Indian exports is the slow penetration in markets where we have signed CEPA or FTA in the last few years,” he said.
India’s exports to ASEAN dropped to $14.66 billion in the first six months of the financial year as compared to $36.74 billion in 2011-12.
FIEO chief said exports to countries such as Singapore, Japan and Korea were much lesser in 2012 as compared to the corresponding period a year ago. On the contrary, he said, imports to these countries showed encouraging trends.
Ahmed said such countries and regions should be put under the Focus Market Scheme to dovetail exports. On its part, FIEO said it is bringing out a comprehensive book that would list commodity-wise reduced tariffs from each country to help exporters penetrate these markets.