Federation of Indian export organisations (FIEO) has warned government that recently imposed Minimum Import Price (MIP) condition on the import of steel is affecting manufacturing industry, because of which exports are also taking a hit.
S C Ralhan, president, FIEO said that exporters are at present working on low margins and facing togh competition besides huge volatility in currency.
Imposition of MIP has led to rise in steel prices by almost 15 percent which has further blunted the competitive edge of Indian engineering sector.
He also said that while engineering exports have declined by around 16 percent in first 11 months of the present fiscal, cycle & cycle parts, auto & auto components, industrial & electrical machinery and hand tools are the worst sufferer.
FIEO has also requested that government should provide steel to all export firms particularly those belonging to MSME sector at the international prices without asking them to go through advance authorisation route.