SME Times News Bureau | 19 Jun, 2010
With uncertainty reigning in the European markets, which was triggered by the sovereign debt crisis in Greece, the government should consider extending focus market benefits to left over European countries, urged the Federation of Indian Export Organisations (FIEO) on Friday.
Reacting to the recently released trade data showing a growth of 35.1 percent surge in India's exports in May, FIEO President A. Sakthivel said, "While the trend in growth will continue for next few months but exporters will face challenges on account of adoption of base rate regime which is likely to increase cost of export credit and uncertainty in the Euro zone."
"Government should consider extending focus market benefits to left over European countries," he urged.
The Focus Market Scheme is a government initiative to offset the high freight cost and other disabilities to select international markets with a view to enhance our export competitiveness to these countries.
FIEO cautioned while exports growth for the month of May is a welcome one but it is because the base (in the comparable period last year) was low. Sakthivel added that in May 2010 the total exports was US$ 16.1 billion which is much less than US$ 18.5 billion which was achieved by us in May 2008.
The government Friday released India's trade figures for May which showed overseas shipments expanding by 35.1 percent to USD 16.1 in the month on the back of improving demand in western markets.
The country' exports were in the red for 13 successive months, starting October 2008 before turning positive in November 2009. Since then exports have continued the trend for the seventh month in a row.
