New Delhi, April 8 Unfazed by the poor export performance of 3.6 per cent growth in dollar terms for the fiscal 2008-09, the Commerce Ministry contends that the worst is now behind and things will appear better post-September 2009.
Talking to Business Line here, the Commerce Secretary Mr Gopal K. Pillai said that after clocking 35 per cent growth during the first half of last fiscal, exports began skidding since October till March 2009 to bring down the overall export growth to 3.6 per cent in dollar terms.
The breakdown in export juggernaut owed primarily to global meltdown and collapse of the financial system in the developed world, which dried up trade finance to the dismay of exporters, he said, citing that Rs 60-crore worth of Indian carpet exported to the US had not been settled by importers.
He said the way thousands of US companies seek bankruptcy clause, Indian exporters are unsure as to ship merchandise goods lest their export receipts should be doubtful.
Asked about the prospects of the current fiscal, which has barely begun, Mr Pillai said that the WTO itself has forecast that world trade would contract by 9 per cent and “if I can hold on to what I have, it would be good.” He said it all depends upon how fast the US banking system gets stabilised, following the G-20 initiatives and the Obama Government’s own rescue operations.
On segments that showed up a better show in exports, Mr Pillai referred to the relatively positive performance of pharmaceuticals, engineering sector, plastics and agricultural exports, while textiles, gems and jewellery, leather, marine products had all fared below par due to the tepid growth in the US and Japan, the two major markets.
To a query as to how agricultural exports have fared better in the face of ban on export of wheat, non-basmati rice and edible oil, he said the ban on wheat export could be lifted if the domestic price situation improves couple of months down the line.
This would be done by the new Government after reviewing the stocks and evolving global scenario concerning wheat production in Argentina and the US.
On export of edible oil, Mr Pillai said when the country is dependent on 50 per cent of its supply from import and it is allowing such imports at zero duty now, export of edible oil is ruled out now except some coconut and non-edible oil. He said export of basmati rice, fruits and vegetables and some relaxation in the case of non-basmati rice would contribute to higher agricultural export growth.
About the new foreign trade policy (FTP) for 2009-14, Mr Pillai said that it would be unveiled after the new Government takes over and a call on export target would also be taken only at that time. He said the inputs the Commerce Ministry obtained in the run-up to the FTP confirmed that what exporters want is “trust, a lot of autonomy to export and not getting tied down in too many transaction cost.” This would be the cornerstone of the new five-year FTP, he said.
Mr Pillai also disclosed that even as merchandise exports growth was a single digit last fiscal, exports from SEZs have clocked a handsome 37 per cent growth. He said there is no proposal for fresh SEZ with nobody betting his money. However, the existing SEZs have been creating more jobs and contributing to export. He said in the Mahindra World City SEZ, Jaipur which he visited on Monday, Deustche Bank has set up a BPO call centre and Infosys also has a BPO call centre. He said that this ITSEZ is the largest one with 750 ha. Despite surrender of five SEZ approvals by DLF, as many as 42 SEZs await notification, he said.
To a query about the India-Asean Summit in Thailand on April 10-11, he said the Union Commerce and Industry Minister, Mr Kamal Nath, will represent the Prime Minister. But, the official level delegation is also holding parallel meetings to thrash out lingering issue of scheduling of tariff cuts so that the new government would take a final call about signing the India-Asean FTA.
Source : Business Line