Identify niche markets and products, says Prabhu
Indian exporters expect Reserve Bank of India (RBI) to create an external market sensitive credit facility through banks and consider private sector lending for exporters.
Making the exporters’ call former Commerce and Industry Minister Suresh Prabhu also urged RBI to ensure the banks are not charging a higher rate for this service, which would further ensure access to lower cost of finance.
Prabhu, India’s Sherpa to the G-20, made the call, pointing out that an easy access and availability of credit has been a key concern of the Indian exporters.
Emphasis should also be laid on price sensitivity along with import sensitivity as both are interrelated and can determine pricing of the product, he stressed.
Addressing the exporters through a Video Conference Interaction with FIEO members on “The Way Forward” on 22 May 2020, Prabhu urged them to identify niche markets and key products for exports.
In order to increase export competitiveness, sectoral studies can be conducted to identify and address key bottlenecks in the economy, added Prabhu.
He also called for immediate action that needs to be taken for opening trade offices in the key global markets on the lines of South Korea and Canada.
Emphasis needs to be laid on redefining subsidies besides aggressively supporting merchant exporters in marketing their products in such globally competitive markets.
With major economies including China, US, Europe almost fully operational now, India trade and industry should be supported in a big way to start operations so that not only our exports are least impacted but our whole supply chain disruptions are also overcome, elaborated FIEO President Sharad Kumar Saraf.
Speaking at the video conference, Saraf pointed out that COVID-19 pandemic has impacted both Indian exports and economy on a larger scale.
Its repercussions on the country could well be felt now as trade and industry operations have yet to start at its full capacity.
“We may see US$30 billion drop in India’s tourism services with almost negligible international tourist arrival in the current fiscal, however the performance of IT and ITes sector will improve during the medium term because of the focus on digitization,” cautioned FIEO DG & CEO Dr Ajay Sahai.
“With exports estimated to decline by 20% or more during the current fiscal, we may see a reduction of US$200 billion on the imports and remittances front.”
Dr Sahai feels that digitisation and automation will play a key role in increasing manufacturing capabilities adversely impacting the employment.
With the new norms coming in, companies may also be losing the wage advantage and hence, robotics manufacturing will come into picture, said Dr Sahai.
Textile manufacturing may also become vibrant in major economies, he added. fiinews.com
