With an expected rise in the lending rates, the government should continue with stimulus measures to support exports, exporters said on Monday.
Noting that the stimulus packages have had a positive impact on the sector, the Federation of Indian Export Organisations (FIEO) said exports are likely to reach around $165-170 billion by the end of the financial year.
"FIEO hopes the government will continue with the stimulus, particularly subvention of the interest rates, for exports, as interest rates are set to move upward," federation president A Sakthivel said in a release in Mumbai.
India's export sector achieved 18.2 per cent growth in November at $13,199 million, as against $11,163 million in the year-ago period. "This is a clear indication of the adaptability of exporters and, of course, the positive impact of the stimulus extended by the government," FIEO said.
On Wednesday, finance minister Pranab Mukherjee had ruled out an immediate exit from the stimulus packages, saying it may not be a prudent step, as it has to be timed with the global economic situation.
At a Corporation Bank function in New Delhi, he said India had cautioned other world economies against immediate withdrawal of stimulus packages, as it may lead to collapse of the world economy.
"Immediately coming out of the stimulus package may not be the correct approach because, in that case, if the world economy collapses, the depression would be deeper," Mukherjee said.
Recalling his interaction with Japanese prime minister Yukio Hatoyama on Tuesday, he said, I told (Hatoyama) that we shall have to strike a balance between the requirement of the economy and the capacity of the economy to bear this level of fiscal deficit and borrowing."