The Federation of Indian Export Organisations (FIEO) has suggested the formation of a committee to evaluate the country's import trends and augment domestic production to ease pressure on imports.
M Rafeeque Ahmed, president of FIEO, said the growing trade deficit of $185 billion was a cause of concern and that it would further increase the country's current account deficit.
Ahmed, however, cautioned that the downward revision in the estimated rate of growth of world trade to just 3.7 per cent in 2012 by the World Trade Organisation (WTO) two days back pointed to challenging times ahead.
He, however, exuded confidence that the Reserve Bank of India (RBI) would take bold decision of sharp cut in key policy rates in the credit policy to be announced next week.
He also demanded immediate restoration of interest subvention and availability of pre- and post-shipment credit in foreign currency to exporters on a priority basis.
The industry body complemented commerce and industry ministry on achieving $300-billion export target for fiscal 2011-12.