The country's exports, stuck in the double-digit negative territory, close to 40 per cent, till a couple of months ago have now registered a growth decline of only 6.6 per cent at $13.19 billion in October, the Union Commerce and Industry Minister, Mr Anand Sharma, said on Friday.
Addressing a press conference here on the eve of his departure to Geneva to take part in the WTO ministerial, Mr Sharma said, “We have been able to retrieve the situation because of various steps taken which otherwise looked very grim”.
He said, “We will be able to succeed in bringing the export decline to low level in the ongoing quarter to end it on a positive note and hopefully in the final quarter (Jan-Mar) 2010 India's exports would have stabilised”.
He said sectors which have done well include spices, marine products, drugs and pharmaceuticals, fine chemicals, man-made yarn, fabrics, plastic and petroleum products.
DGFT review
Mr Sharma said that as promised in the Foreign Trade Policy in August, the Directorate-General of Foreign Trade (DGFT) has begun a sectoral review which would be completed by the first half of next month to identify sectors that need further support.
He assured the exporters that the Government is “very closely monitoring the developments and global trends” and once its sectoral performance is ready “we will intervene, if required” to shore up sectors that were hurt by the global downturn.
Asked about the likely ban on raw cotton exports in view of the global fall in cotton production, Mr Sharma said that “we are assessing local cotton supplies and I asked the DGFT to see whether there is any exportable surplus. If not, we will not allow export”.
He further said, “Our priority will be to do what is in the interest of the Indian industry so that what was out of the country is after value addition, but that does not mean that there won't be export of cotton that has been there”.
Dubai World impact
To a specific query about any dampening effect on the risks of a multi-billion dollar debt default by Dubai World on India's exports to the UAE, the single biggest destination, Mr Sharma said, “India is a very large economy. I don't think some development in real estate in Dubai will have an impact on the Indian economy”.
He said India's housing , real estate sector and construction industry were doing well which was confirmed by the escalating demand for construction materials such as cement and steel. Despite current downturn, FDI inflows during the first half of the current fiscal were $15.3 billion, against $17.2 billion in the corresponding half of last fiscal, the Minister said adding that India continues to be a highly attractive destination for investments as attested by global reports.
On industrial growth, Mr. Sharma said the recent revival of industrial growth, particularly the manufacturing sector after the stimulus packages of the Government was broad-based, encompassing consumer durables, basic chemicals, chemicals and chemical products, machinery and equipment, petroleum and coal products and plastic.
WTO ministerial
On the forthcoming WTO ministerial, Mr Sharma said this is “not meant for substantive negotiations but an important meeting to review the functioning of the WTO, to look at the institutional issues relating to global trade and to discuss the global economic outlook and the responses of the various measures which Governments have taken in a coordinated manner”.
Mr Sharma also voiced concern over the global economic situation and its adverse effect on the poor developing countries which need “considered support”.
He also feared the trend in some countries to look inward and erect non-tariff barriers as protectionism is not good for global economy.
“It can only prolong the recession and delay the recovery,” he said.
Source : Business Line