RBI's inflation outlook a worry for exporters: EEPC India Chairman

Posted by Daily Shipping Times on 09-02-2018        Tweet

The net borrowing cost for the exporters remains quite high and comes in the way of fully exploiting the opportunity given by the global growth scenario

KOLKATA: RBI's inflation outlook which is on the higher side, is very much a matter of concerns for the exporters as the prices of raw material like steel for the manufactured exports have run up excessively, hitting the competitive advance of the Indian shipments, said EEPC India Chairman Mr Ravi Sehgal.

"While the RBI's commentary about the global economy sounds positive with reference to the developed markets, the domestic issues with regard to rising prices in the domestic economy, would have a negative impact on our competitive advantage, especially for the engineering exporters," said the EEPC India Chairman.

He said, the council has been at the forefront of reminding the Government about the need to check the prices of crucial raw material like steel and now that the RBI has also flagged the issue of inflation running high, an effective Government intervention would be advisable.

Mr Sehgal said while the decision of the RBI to keep the policy rates was on the expected lines, the net borrowing cost for the exporters remains quite high and comes in the way of fully exploiting the opportunity given by the global growth scenario.