NEW DELHI: The government is talking to industry associations to identify specific problems faced by export-driven sectors such as textiles,leather, engineering goods and gems & jewellery, which have been hit hard by the global downturn, and address them in the coming foreign trade policy.
The Directorate General of Foreign Trade (DGFT) is holding consultations with various export promotion councils to get inputs for the policy, a commerce department official told ET.
The foreign trade policy, which will list the ground rules for carrying out exports and imports, is expected by the end of August.
India’s exports, which have been in the negative zone since October last, fell about 30% in the first quarter ended June.
The commerce department has already held one meeting with the industry as a whole on the measures to be taken in the policy.
“Although we already have an idea about what the industry generally wants, it always helps to listen to specific problems,” said the official, requesting anonymity.
The textile industry, for instance, is faced with shrinking margins as exporters from other countries, with the backing of their governments, sell at much lower prices.
“Although we are working on extremely low margins, our buyers are complaining that our prices our high,” said Rakesh Vaid, chairman, Apparel Export Promotion Council (AEPC).
The carpet industry, on the other hand, is facing a major demand shortage and has witnessed a 24% fall in exports over the last few months, according to Ashok Jain, president of the Carpet Export Promotion Council, which has sought all possible support from the government.
The tourism industry, which earns precious foreign exchange for the country, has demanded all sops given to exporters, including service tax exemption, said Subhash Goel, chairman of industry body Assocham’s tourism committee.
Source : The Economic Times