As exports dipped by 30 per cent in May -- extending the fall to eighth month in a row-- the government today reviewed the grave situation with top exporters promising them incentives.
"We will be giving incentives so that Indian exports will become competitive," commerce and industry minister Anand Sharma told reporters after meeting heads of different export organisations, including commodity boards here.
Faced with slump in demand in key markets such as the US and Europe, India's exports plunged by 30 per cent in May as per the quick estimates, given by commerce secretary G K Pillai. The final figures will be released on July 1.
Exports fell the most in 14 years by 33.2 per cent in April to $10.74 billion in April 2009-10, from $16.08 billion a year ago.
"We do still expect negative trend, may be, till August," the commerce and industry minister said.
Sharma said he would be meeting finance minister Pranab Mukherjee soon and make sector-specific recommendations and policy measures.
Mukherjee, who is to present the Budget for this fiscal in the first week of July, yesterday met exporters who briefed him about their difficulties.
Among other things, exporters seek a cut in the cost of credit. "Yes, there is a case to cut interest rates. . . we will be taking up this issue," Sharma said.