India's exports are growing at a healthy rate and may record about 20 per cent growth in June, Commerce and Industry Minister Suresh Prabhu said today.
India’s exports are growing at a healthy rate and may record about 20 per cent growth in June, Commerce and Industry Minister Suresh Prabhu said today. He said the ministry is working on a detailed strategy to push the shipments.
“In May, our exports went up by almost 20 per cent and it looks like in June also, it (rate of growth) will be close to 20 per cent,” he said here at an event of Federation of Indian Export Organisations (FIEO). However, these are challenging times for global trade as countries are taking protectionist measures, he noted.
Countries are trying to put sanctions for their benefit but it would not give positive results as economic sanctions essentially mean “that you are cut-off from rest of the world”, Prabhu said. “We are working on a combined strategy about what could be done so that exports increase at a rapid rate,” he added.
The minister was addressing exporters on preparing strategy to add 100 billion dollar to India’s exports. The strategy is expected to be finalised by the end of this month. The official figures for June will be released by Commerce Ministry on July 15.
The country’s merchandise exports grew 201.8 per cent, highest in six months, in May to USD 28.86 billion. Prabhu also said banks should lend exporters as part of priority sector lending so that they do not face credit-related issues.
He said the government is providing support to boost exports and India will not be affected by the headwinds at global trade level.
“Exports should be treated as priority sector lending by the banking system. Soon we will be holding a meeting with Indian Bank Association to discuss the issue,” he said. Talking about US challenging India’s export benefit schemes in the World Trade Organisation (WTO), he said the government is dealing with the matter as “we have to follow the rules of WTO”.
FIEO President Ganesh Gupta outlined several challenges being faced by Indian exporters including delay in GST refund and high cost of credit. The organisation has prepared a detailed plan to add 100 billion dollar to India’s exports. In 2017-18, exports rose about 10 per cent to USD 303 billion.