Exporters' association FIEO has expressed concern over dismal growth in exports by micro, small and medium enterprises (MSMEs) and labour-intensive sectors in May. MSME units particularly in labour-intensive sectors such as gems and jewelery, leather & leather products, RMG, jute manufacturing including floor covering, carpets, handicrafts, agri products and many other sector of exports are either showing modest or negative growth. These sectors are facing a liquidity crunch as banks and lending agencies are continuously tightening their lending norms, as reflected in sharp reduction in exports credit.

India's exports rose 20.18 per cent in May to $28.86 billion from $24.01 billion of merchandise shipped out during the corresponding month of last year but trade deficit widened due to high oil prices. Domestic issues including access to credit, cost of credit especially for MSMEs should be seriously looked into as global challenges and increasing protectionism, has also added to the woes of the exporters.