Government measures to protect the interest of companies that produce steel, one of the key raw materials to boost exports, has the potential to derail the growth optimism expressed in the Economic Survey, said the Engineering Export Promotion Council (EEPC).
It is a pity that when the Economic Survey tabled in Parliament predicts the economy growing at a good clip, on the back of revival in exports, the government has been resorting to protecting the steel industry. This has made the most essential raw material for exports expensive, dealing a severe blow to competitiveness of Indian exporters, said Ravi Sehgal, Chairman, EEPC India.
In the absence of private sector investment due to subdued domestic demand, the Economic Survey has pegged an optimistic growth forecast of 6.7 per cent for the current fiscal and 7.5 per cent in 2018-19 on a robust revival in exports.
While there is no doubt that the global economy is picking up, and is poised to grow further, Indian exports need to be cost competitive to take advantage of it, he said.