Date:29/11/2008 URL: http://www.thehindu.com/2008/11/29/stories/2008112954171400.htm

Business

Exporters seek stimulus package

Special Correspondent

NEW DELHI: Expressing concern over global economic slowdown that has started affecting Indian industry and the economy, exporters on Friday urged the Centre to announce a stimulus package to boost the economy, particularly the export-oriented sector.

Hoping that the Government would soon announce a package to pump in money into the economy, Federation of Indian Export Organisations (FIEO) President G. K. Gupta said that in the present circumstances, micro, small and medium enterprises (MSMEs) were badly hit due to higher interest and lending rates, particularly those engaged in the export sector.

Mr. Gupta pointed out that while the European Union had already announced a $200 billion stimulus package, China has announced its largest rate cut in the last 11 years.

Maintaining growth

It has also announced a stimulus programme for 2009-10 earmarking huge funds to construct roads and related infrastructure projects to maintain growth.

“A similar package was urgently needed in India too to sustain the growth momentum,” he added.

Mr. Gupta further said that non-food credit showed a healthy offtake due to marginal reduction in benchmark prime lending rate (BPLR) on which export finance to the MSME sector was dependent. Deferred period for credit, both for pre and post-shipment to 360 days, would also be a pre-requisite, Mr. Gupta added.