New Delhi, July 14 Sports Goods and Export Promotion Council has said exports are likely to tank 15-20 per cent in 2009-10 due to the global economic downturn.
The apex body said Government initiatives such as the Focus Product Scheme should cover more products to help the ailing sector.
“The export order situation is gloomy as buyers are placing only short-term orders and in minimum quantity. We have proposed certain measures to the Government to help the industry,” Mr Tarun Dewan, Secretary-General, SGEPC, said.
India exported sports goods worth Rs 585 crore in 2008-09. The UK is the biggest market with 30 per cent share followed by the US, which accounts for 15 per cent.
Exports mainly consist of inflatable balls, boxing equipment, track and field equipment.
Lauding the Government’s decision to allocate higher funds under the market development assistance scheme, he said the interest subsidy provided to labour intensive export sectors has not been extended to the sports goods sector which is very labour intensive.
He also added that the top 23 exporters have lost approximately Rs 45 crore worth of export orders in the last couple of months.
Among the steps called for reviving the sector are increasing the duty-free scrips under the Focus Product Schemes to be increased to 10 per cent from the current 6.25 per cent.
The council also mentioned that inland haulage by Concor should be reduced by at least 50 per cent.
Source : Business Line