Govt reviews drastic fall in exports; Anand Sharma briefs PM
As India's exports continue to show declining trends, with 30% dip in May - the eighth consecutive month in a row the govt on Wednesday reviewed the grave situation with top exporters promising them sops.
"We will be giving incentives so that Indian exports become competitive," Commerce and Industry Minister Anand Sharma told reporters after meeting heads of different export organisations and commodity boards in New Delhi.
After the review meeting, Sharma met Prime Minister Manmohan Singh.
Faced with slump in demand in key markets such as the US and Europe, exports plunged by 30 per cent in May, according to quick estimates given by Commerce Secretary G K Pillai. The final figures will be released on 1st July.
Exports fell the most in 14 years by 33.2 per cent in April to USD 10.74 billion in April 2009-10, from USD 16.08 billion a year ago.
Anand Sharma said, "We still expect negative trend, may be, till August."
New Commerce & Industry minister said that he would meet Finance Minister Pranab Mukherjee soon and make sector-specific recommendations and policy measures.
Among other things, exporters seek a cut in cost of credit. "Yes, there is a case to cut interest rates... we will be taking up this issue," Sharma said.
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