India's Export Growth-Critical Issues

From left to right: Mr. M. Velmurugan, IES, Executive Vice-Chairman, Industrial Guidance and Export Promotion Bureau (GUIDANCE), Industries Department, Govt. of Tamil Nadu, Mr. C VR Rajendran, Chairman and Managing Director, Andhra Bank, Mr. M. Rafeeque Ahmed, President, FIEO, Mr. CA M R Venkatesh, Practicing Chartered Accountant, Mr. Jag Ram Meena, Joint Commissioner of Customs (Air) at Business Standard Smart Business in Chennai on 7th August 2014, in association with Federation of Indian Export Organizations.

“The Reserve Bank of India should give a mandate to the Banks that a portion of their lending should be for exports”, said exporters. On the other hand, Banks said that while the finance is essential, the key ingredient is persuasion.

This was the key debate at the Smart Business event on "India's Export Growth- Critical Issues", organised by Business Standard, along with Federation of Indian Exporters Organisation (FIEO) and supported by Andhra Bank.

“Though RBI had said that 12% of the Banks' lending should be for exports, the Regulator did not make it mandatory. If RBI makes it mandatory, then the credit will not be an issue”, said exporters.

CVR Rajendran, Chairman and MD, Andhra Bank, said that Capital is available in the country. ”Finance is not an essential ingredient for exporters, but the key is persuasion. Gut feeling and desire

is important, not capital and infrastructure”, he said, while quoting a few case studies from the textile town of Tirupur, from where he started his career in the Banking industry.

China is becoming costlier, Brazil is slowing down and other countries have their own issues, it is a great opportunity for exporters. “We (exporters) should be cosr competitive and focus on quality”, he said.

M Rafeeque Ahmed, President, FIEO, said that in the last few months, exports from India are picking up, since the demand is improving internationally. He noted that FIEO estimated exports from India can touch about $750 billion by 2019, with a CAGR of about 18-19 per cent, from the current$320 billion.

M Velmurugan, Executive Vice-Chairman, Tamil Nadu Government's Industrial Guidance and Export Promotion Bureau, outlined various State Government initiatives.

”These initiatives have helped Tamil Nadu to become the second largest economy in the country. In the last nine years, the average growth rate was about 9.7%. One of the key reasons is exports”, he said.

M R Venkatesh, practicing Chartered Accountant, said, “Infrastructure development in the country is not keeping up with the pace of the competitions and this is one of the major challenges for the exporters".

Jag Ram Meena, Joint Commissioner of Customs (Air), said, "Our younger generation and population is our greatest strength. We should be positive in our attitude."