The apex exporters body, Federation of Indian Export Orgaisations (FIEO) has asked the government to bring exports under priority sector lending, which was accepted by the Padmanabhan Committee.
President, Federation of Indian Export Orgaisations (FIEO), M Rafeeque Ahmed in a statement Friday said that the Padmanabhan Committee has not been conceded to by the RBI and using the same yardstick for exports as for domestic sector would only stifle exports and their valuable contribution to GDP of the country, which is on a decadal low of around 4.4 perce
t.
President FIEO urged that priority sector lending for exports; single window for consortium lending; exclusion of debt-equity ratio/current account ratio while appraising loans for exporting units; excluding pre-shipment credit from MBPF etc. should be considered forthwith by RBI for boosting exports and to offset the domestic slump across sectors.
While commenting on the monetary policy review, President, FIEO stated that measures taken such as reduction in MSF rate by 75 basis points from 10.25 per cent to 9.5 per cent and at the same time an increase in the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points) from 7.25 per cent to 7.5 per cent and the reverse repo rate under the LAF stands adjusted to 6.5 per cent and the Bank Rate stands reduced to 9.5 per cent with immediate effect will reverse to some extent the liquidity tightening measures taken by RBI in mid July.
FIEO Chief explained exports have started to look up after 20 months in July/August 2013 with consumer sentiment moving up in advanced markets/ Business indices being on the upbeat mode while the CSO showed domestic sectors with negative growth for infrastructure backed sectors such as cement/power/steel/construction / and others such as transport and utility vehicles/auto components etc.
