NEW DELHI, May 10: Worried over a steep decline in exports, the Commerce Ministry has sought Rs 300 crore to develop export infrastructure around ports.
“We have to modernise our export infrastructure in order to boost exports. Export situation is not good. We have sought Rs 300 from the Finance Ministry to develop the infrastructure,” a top commerce ministry official told PTI.
The amount is proposed to be used this fiscal only to set testing laboratories, certification centres, warehouses, cold storages, convention centres and exhibition centres around ports.
The Commerce Ministry has identified some ports where the funds would be deployed.
The official said the Finance Ministry has provided only Rs 50 crore, which is not adequate and “we have urged them to increase the allocations”.
India’s exports dipped deeper into the negative zone, recording a decline of 21 per cent in March, the biggest fall in the past six years, pulling down the total shipment for 2014-15 to USD 310.5 billion, missing the target of USD 340 billion.
Exports have been on a downward loop since December last year. The previous biggest decline in export was in July 2009, when it slumped 28.4 per cent.
India’s exports are contracting mainly because of inadequate infrastructure, global demand slowdown, soft crude oil prices, and a declining competitiveness of Indian exporters.
An industry expert said inadequate infrastructure and old testing and certification facilities near ports are impacting the country’s exports adversely, besides pushing the transaction costs up.
A commerce ministry’s strategy paper released in 2010 had emphasised on the need to invest billions to boost exports. It had asked the government to invest to modernise roads, ports, railways, airports, power and customs stations.
“Port infrastructure needs to be modernised to reduce transaction costs and boost shipments,” FIEO President S C Ralhan said.
India’s exports in the last three years have been hovering around USD 300 billion. India’s exports in 2013-14 fell short of the USD 325 billion target, managing to reach USD 314 billion. It stood at USD 300.4 billion in 2012-13 and USD 307 billion in 2011-12. (PTI)
Trending Now
E-Paper
Follow our WhatsApp channel