Exporters expecting a good package in Budget
With the Union Budget for the current financial year just around the corner, the Federation of Indian Export Organisations (FIEO) is hoping that the government will offer a good package for the cash-strapped export sector in the Budget.
According to the federation, the government has to address the prime concerns of the sector, including high interest rates, static refund rates and inadequate market and product support to trade and industry.
Dominated by SMEs, the domestic export sector plays a key role in driving the national economy. However, the sector suffered heavy losses during 2008-09 due to the global economic crisis, which resulted in a drastic decline in demand for goods worldwide. The country's merchandise exports have dropped for 8 consecutive months, compelling several exporters, particularly small players, to cut down their activities to stay afloat.
Resumption of queries
However, the FIEO has reported that some exporters have started getting queries recently. If orders keep coming in, the sector can bounce back strongly and achieve a 7-8% growth in 2009-10 over the $168.7 billion it earned in the last financial year.
At the same time, converting the queries into firm orders is not going to be an easy task, opines SA Kumar, Director of Biligiri Granites, a small-sized granite exporting company in Chamrajnagar, Karnataka.
'Countries like China, Bangladesh, Vietnam and Thailand are posing stiff competition to the Indian export segment by selling their goods at much lower prices,' says Mr Kumar.
To overcome this challenge, domestic exporters need assistance from the government. 'While an improvement in the market scenario is imperative for business revival, small players like us also require adequate support from the government. We hope that in the upcoming Budget the government addresses the pressing issues facing the export segment,' says Amudan M, proprietor of AV Exports, a small-sized steel and stainless steel products exporting firm in Chennai.
Indian exporters, especially SMEs, would now look forward to July 6, 2009 and hope to get a good deal from the government in the Budget.
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