In order to increase exports and raise its contribution to the country’s economic growth, Commerce and Industry Minister Nirmala Sithamaram has said that her Ministry will pitch for priority sector status for export credit. Priority sector status obliges banks to lend a specified share to the sector. Sithamaram has said that her Ministry will take up the grievances of various sectors such as gems & jewellery, marine and engineering individually, and also take it up with the ministries concerned.
The Minister further said “The Prime Minister is keen that the government is constantly engaged with the export sector to ensure that their problems are sorted out expeditiously. To ensure consistent high rates of economic growth, possibly closer to 10 per cent, we need exports sector also do to well” and added that her Ministry will hold interactions with Indian High Commissions and Embassies along with their commercial and economic wings to make them more vibrant and understand requirements of exporters.
The poor run of the Indian trade continued for the 15th month in a row, with exports dipping 5.66 percent in February to $20738.60 million, against $21983.43 million in February 2015 due to contraction in shipments of petroleum and engineering goods amid tepid global demand. Cumulative value of exports for the period April-February 2015-16 was $238418.11 million, down by 16.73 percent as against $286305.92 million over same period last year.