Delhi Exporters Association today requested the government to formulate a "clear cut" policy for MSMEs and the cottage industry to help boost exports.
The micro, small and medium enterprises (MSME) sector, which provides bulk of employment and contributes about 45 per cent in the country's total exports, is going through difficult times, the association said in a statement.
"Government should come out with a clear-cut policy to encourage exports, especially for MSME, tiny and cottage industry sector," it said.
It said that domestic factors are mainly responsible for dip in exports.
"Main cause for export decline is the lack of confidence amongst foreign buyers in India's ability to supply products on time and at proper quality and price," it said.
High transaction cost and interest rates for exporters too are responsible for declining exports, it added.
Going by the trend, it will be difficult to achieve the USD 900 billion exports target by 2019-2020, it said.
"Government needs to look seriously at the problems of the MSME, tiny and cottage sector. A mere lip service is not enough," it said.
It also said India's manufacturing base is getting eroded due to complexities in the sector.
"Unless, India's manufacturing exports increase every year by 10-15 per cent, it will be difficult to generate more employment," it said.
India's exports shrank by about 14 per cent in April to USD 22 billion, registering a contraction for fifth straight month.
