Industry Body Seeks Package For Exporters Amid Falling Trade

The Engineering Exports Promotion Council (EEPC) on Saturday urged the government to come out with a package for exporters to tide over the damage to trade caused by the COVID-19 outbreak.

The country's exports contracted by a record 60.28 per cent to $10.36 billion in April amid the coronavirus-triggered lockdown, official data showed on Friday. Engineering exports declined 65 per cent.

"Although the government has announced a series a measures so far concerning some sectors of the economy, it should come out with a package for exporters in these challenging times," EEPC executive director Suranjan Gupta told news agency Press Trust of India.

He said exporters have already intimated the central government about cancellation of some contracts.

"The exporters are also facing pressure for giving discounts on future orders," Mr Gupta said.

"We also wish to bring to the attention of the government that China''s industrial production has revived and there is a danger that China will flood the world markets," he said.

The Centre should provide easy working capital and packing credit to exporters, the official said.

Mr Gupta also said the RBI should immediately notify about the Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce premiums for small exporters.

Under the scheme, also called the Export Credit Insurance Scheme (ECIS), up to 90 per cent of the principal and interest is covered.

Sanjay Budhia, chairman of industry body CII's national committee on exports and imports, said the Union government has issued a circular on extension of the interest subvention scheme.