News and Events

Exporters seeking bail out from government

Apex industry body ASSOCHAM said that reeling under the economic slump in the United States a sovereign debt crisis in Europe and a sluggish economic growth in Japan, the exporters in India are expecting the government to announce an Amnesty Scheme to bail them out of the current crisis in international markets.

The Associated Chambers of Commerce and Industry of India conducted a random survey of exporters with a well diversified presence across Asia, Africa, Europe, US and other prominent centres across the world.

ASSOCHAM interacted with nearly 500 exporters based out of Ahmedabad, Bangalore, Chennai, Delhi and Mumbai during mid September and November to ascertain the impact of global economic slump on India’s exports more so as US and the European Union together account for about 35% of India’s aggregate exports.

Mr DS Rawat secretary general of ASSOCHAM while releasing the findings of the survey said that “Consequences of slowdown in global economy on exports from India are very much apparent as the growth of exports from India fell to a meager 11% in October 2011 as against about 36 per cent in the last quarter of the current fiscal.”

Mr Rawat said that “Exporters across India are finding it extremely difficult to fulfill their export obligations due to a grim scenario in the global markets and have urged the government to come to their rescue as the situation is going beyond their control.”

Mr Rawat said that “In order to stimulate exports and check trade deficit the government should provide finance to exporters especially those from small and medium sectors at concessional rates.”

Nearly 75% of the respondents said that their exports have been suffering a severe downfall ever since the sub-prime crisis of 2008-09 and are looking forward to certain significant steps by the government to boost exports from India.

About 40% of respondents said that exports might slow further and demand might slacken amid persisting global economic crisis.

Majority of exporters said that current global economic turmoil has pushed the trade deficit to record low hurting the demand for Indian goods in advanced economies.

Nearly 25% of exporters said that government’s efforts to promote exports to markets like that in Africa have definitely eased the pressure a bit but demand contraction in traditional markets like the US and Europe is the crux of their worry.