New Delhi: As exports remain downhill with 30 per cent dip in May -- extending the fall for the eighth month in a row--, the government on Wednesday reviewed the grave situation with top exporters promising them sops.
"We will be giving incentives so that Indian exports become competitive," Commerce and Industry Minister Anand Sharma told reporters after meeting heads of different export organisations and commodity boards.
After the review meeting, Sharma met Prime Minister Manmohan Singh.
Faced with slump in demand in key markets such as the US and Europe, exports plunged by 30 per cent in May, according to quick estimates given by Commerce Secretary G K Pillai. The final figures will be released on July 1.
Exports fell the most in 14 years by 33.2 per cent in April to USD 10.74 billion in April 2009-10, from USD 16.08 billion a year ago.
"We still expect negative trend, may be, till August," the Commerce and Industry Minister said.
Sharma said he would be meeting Finance Minister Pranab Mukherjee soon and make sector-specific recommendations and policy measures.
Among other things, exporters seek a cut in cost of credit. "Yes, there is a case to cut interest rates... we will be taking up this issue," Sharma said.
Oil imports in April contracted by 58.5 per cent to USD 3.6 billion, while the non-oil inbound shipments too dropped by 24.6 per cent to USD 12.1 billion.
Pillai also said that exports in 2009-10 would remain in the range of USD 170 billion.
"(With) the rising oil product prices, the trade deficit for the current fiscal would remain at USD 100 billion compared to last year's USD 120 billion," the Commerce Secretary said.
Meanwhile, the Federation of Indian Export Organisations (FIEO) said inventories with foreign buyers are getting exhausted and exporters have started getting orders.
"...inventories are getting over and orders are increasing. Demand for low-price articles is increasing but there are still constraints in the middle and high class segments," FIEO Director General Ajay Sahai said.
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