MUMBAI: Exporters should adopt a cluster approach to make goods cheaper and competitive that would also help them receive the incentives provided through various schemes of the Export-Import Bank of India (Exim Bank), a top bank official said on Monday.
"Like Chinese exporters, Indian corporates should adopt a cluster approach to get the benefit of various concessional schemes floated by the Exim Bank," Chairman and Managing Director of Exim Bank TCA Ranganathan said addressing a Ficci seminar here.
He also said this would make the export of products cheaper and more competitive in the global markets.
Ranganathan also emphasised on the importance of mass production to make manufacturing cheaper. "Chinese exports are competitive in the global markets due to mass scale of production. Our manufacturer should also follow that kind of model for making our exports competitive," he said.
Talking about export growth, he said exports had shown good growth despite uncertain economic environment.
The country's exports grew by 36.3 percent in September to USD 24.8 billion over the corresponding period last year as per data released by the government. During the April-September period, merchandise shipments rose 52.1 percent to USD 160 billion.
The sectors that exhibited significant growth during the first half include engineering, gems & jewellery and petroleum.
While engineering exports rose 103 percent to USD 46.4 billion, petroleum shipments jumped 53 percent to USD 27 billion and gems and jewellery consignments grew 23 percent to USD 18.5 billion over the same period last year.
The government has set an export target of USD 300 billion for this financial year against USD 245.9 billion achieved in the last fiscal against a targeted USD 200 billion.
Referring to various free-trade agreements (FTAs), other trade experts said exporters should take advantage of such agreements.
"Exporters should take advantage of various FTAs along with various trade liberalisation measures of the WTO to make exports more competitive," Centre for WTO Studies head Abhijit Das said.
Source : economictimes.indiatimes.com