New Delhi, Oct 9 (UNI) In view of constant currency appreciation, Federation of Indian Export Organisations (FIEO) today said that lowering of export target from 160 billion dollar to 140 billion dollars is inevitable in view of strengthening of rupee.
''In the background of constant appreciating currency, it is a foregone conclusion,'' said Mr Ganesh Kumar Gupta, President FIEO.
Mr Gupta had categorically stated few months back that country will not be able to achieve the export target of 160 billion dollars, if it does not offer more supportive measures to the exporters to add to their competitiveness.
The June package announced by the Government, which was partly implemented, was not enough to boost exports. FIEO had been asking for measures like refund of all un-rebated taxes and duties levied by central and state Governments, scheme to neutralize the high cost of electricity and an export marketing fund with a corpus of about 0.5 per cent of exports, FIEO President said.
He stated that expansion plan of exporting units have been shelved and the closure of large number of tiny, cottage and small segment of industry does not augur well for employment in the country. The drop in exports will lead to closure of many units, adding to already aggrieved unemployment situation while losing the potential market. It is estimated that around 80 lakh job will be lost due to lower exports, he cautioned.
FIEO urged the Government to bring effective measures quickly to restore competitiveness to exports particularly for small and medium exporters.