GIVE SOME TIME TO FTP INITIATIVES TO BEAR RESULTS : M RAFEEQUE AHMED, PRESIDENT, FIEO
FIEO/PUB/PR /80/12 - August 1, 2012
GIVE SOME TIME TO FTP INITIATIVES TO BEAR RESULTS : M RAFEEQUE AHMED, PRESIDENT, FIEO
Reacting to the Trade Data for the month of June, 2012 and first quarter of the current fiscal, Mr M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) said that the export data is on the expected lines as contraction in global demand and deceleration in manufacturing are primary reason for decline in exports. However, the IIP data, point to a modest recovery in manufacturing during May which will help exports in next few months. Moreover, global situation is slowly improving and we expect exports to be at a take off stage by October. President, FIEO exuded confident to achieve the export target of US$ 350 billion fixed for the current financial year. The reduction in imports would help to manage the trade deficit which can be kept below US$ 150 billion during 2011-12.
Mr Ahmed said that the initiatives taken in the Foreign Trade Policy will take little time to bear its fruit and we can hope for over 30% growth in second half of the 2012-13. While he acknowledged positive measures announced by RBI on Forward Booking and EEFC , FIEO Chief added that the cost of credit is still a cause of concern for the export sector and a general reduction in the interest rate would benefit manufacturing as well as exports.
