The commerce ministry has called a meeting of exporters on Monday to take stock of the situation as the country’s outbound shipments have been contracting for the last four months, an official said.
Exporters are expected to flag issues such as extending greater support to participate in global exhibitions and fairs; expediting negotiations to conclude free trade agreements with the UK, Canada, Israel and GCC (Gulf Cooperation Council); and allowing industry double-weighted deduction on salary to professionals to retain talent in India.
Exports declined for the fourth-consecutive month by 10.3 per cent year-on-year to $34.98 billion in May, while the trade deficit widened to a five-month high of $22.12 billion, according to the ministry data.
Cumulatively, exports during April-May this fiscal contracted 11.41 per cent to $69.72 billion, while imports declined 10.24 per cent to $107 billion.
Demand slowdown in major markets, high inflation in developed economies and the Russia-Ukraine war are impacting the country’s exports.
Apparel Export Promotion Council (AEPC) chairman Naren Goenka said greater support measures fromthe government such asfor attending global exhibitions, would help in pushing exports.
FIEO director general Ajay Sahai said the thrust on RoDTEP (Remission of Duties and Taxes on Exported Products) scheme and the Advance Authorisation, scheme would also help in boosting exports.
When asked about ways to promote the shipments, Sanjay Budhia, chairman — CII National Committee on Exim and MD — Patton Group, said that given the global recessionary trends, a strategic approach is required to stimulate exports.
“Resolving the specific issues faced by exporters, particularly those related to non-tariff barriers impacting supplies to crucial markets, should be the primary focus,” Budhia said, adding “geopolitical strains, the rapid adoption of e-commerce and the Covid-19 pandemic have led to a rethinking of strategies for sourcing, diversification of supply routes and manufacturing”.
He added that promoting technology upgradation and innovation in manufacturing processes will also help improve the quality and competitiveness of Indian products.
The focus should be on skill development initiatives to enhance the capabilities of the workforce.
“Support should be provided for modernising the manufacturing processes, skill development, promoting sustainable practices and encouraging R&D to enhance the competitiveness of sectors such as pharma, chemicals, textiles and auto and auto components,” he added.
Attention should also be given to the promotion of quality standards and streamlining of regulatory processes, he said, adding that this can also help India enhance its exports in the agriculture and food processing sectors.
India should also set up a trade promotion body with dedicated offices overseas for branding and promotion activities as well as providing marketing services to Indian exporters, he suggested.
Representatives from export bodies, including the Federation of Indian Export Organisations (Fieo), AEPC and the Council for Leather Exports are likely to participate in the meeting, the official said.
