Strong export growth likely in second quarter: FIEO

The growth trend witnessed in exports so far may continue in the second quarter as well but would not hold the same tempo in the third and fourth quarter, an industry body today said.

"Export growth is going to continue for another three months till September," Federation of Indian Export Organisations  (FIEO) president Ramu Deora said in a release issued here.

The high growth of 46.4% in exports during June at USD 29.2 billion is a reflection of the entrepreneurship of the exporters and government's supportive policies, he said.

However, this growth trend is not likely to continue in the third and fourth quarters and might be limited to around 35-40% because of the withdrawal of DEPB from October 1, he observed.

He opined that duty entitlement passbook (DEPB) should not be withdrawn till the Goods and Services Tax (GST) is implemented. He also felt that if other banks follow State Bank and hike their interest rates from 11% to 11.50% would make an adverse impact on exports and make Indian goods
non-competitive.

FIEO has also requested the Finance Minister Pranab Mukherjee to reintroduce interest subvention of 2% for the entire export industry to sustain growth momentum, he said.