Navigating Challenges: FIEO Urges Govt Action to Boost Indian Exports

FIEO urges the government for immediate steps to tackle export decline, advocating enhanced liquidity support and interest subvention schemes. The president emphasizes restoring cap limits for MSMEs and extending benefits to all export sectors. Ongoing global uncertainties and trade disruptions continue to challenge export growth.

The Federation of Indian Export Organisations (FIEO) has expressed concern over the declining export figures and is urging the government to take swift action. The exporters' body is calling for improved liquidity measures and a higher rate of interest subvention to facilitate shipments.

FIEO President Ashwani Kumar highlighted the negative impact of the Rs 50 lakh-per-company cap in the interest equalisation scheme on many MSMEs, making it difficult for them to finalize orders. The organization is demanding a restoration of the cap to Rs 10 crore for all MSMEs over a five-year period, along with the extension of the RoDTEP benefits to all export sectors.

Kumar pointed out that global economic uncertainties, international trade disruptions, and regional tensions contribute to the export dip. Meanwhile, a surge in gold imports has widened India's trade deficit. Service exports continue to grow, surpassing merchandise exports, as noted by the Global Trade Research Initiative.

(With inputs from agencies.)