Decline in export worrisome: FIEO

Mumbai, Aug 21: The decline in the share of manufactured goods in the country's exports needs to be reversed so that it does not affect the employment, Federation of Indian Export Organisations (FIEO) president Ganesh Kumar Gupta observed.

Voicing his concern, Mr Gupta in a release here said that manufactured goods in the country's export list declined from 67 per cent to 64 per cent at a time when share of manufactured items is gradually increasing in the global merchandise trade. ''While exports have gone up substantially in 2007-2008, the last three months figure for sectors such as textiles and apparels, handloom, handicrafts leather and marine products, showed slow down of export of traditional sector,'' Mr Gupta said.

He said this may affect the employment in the export sector, at a time when volume wise growth is more crucial for India as employment is a major challenge both in urban and rural areas.

Mr Gupta also predicted that exports sector, which showed growth of 26 per cent in 2007-08, would face major challenges due to high volatility in exchange rate and slow down in US and EU markets, which contribute close to 35 per cent of India's total exports.

He also urged the government to extend relief package to protect employment in the export sector.

UNI