Exports have improved since May and trade deficit has declined to $2.5 billion currently from $10 billion in April – May, according to the Union Minister of State for Commerce and Industry, Mr Jyotiraditya Scindia.
Speaking to the journalists of The Hindu group of publications, Mr Scindia, said that the “rate of change of the decline” in exports has been arrested.
Exports fell from $ 15 billion in December last year to $10 billion in April 2009 . But since April, exports have been increasing month on month by a billion dollars. In May it was $11.3 billion, June- $12.5 billion, July $13.6 billion and August it was $14.3 billion.
He would be happy only when the growth in exports happening month on month is combined with a positive growth in percentage terms compared to last year. “I am hoping for a more positive growth trend from December 2009 - January 2010,” he said.
The Ministry of Commerce and Industry is in talks with the Ministry of Finance to ensure that the interest of exporters is taken care of under the new tax dispensation, said Mr Scindia.
The Direct Tax esCode was only “an advisory” and a draft that is still open to debate and discussions, he said in response to a question as to how the DTC, which if brought into force in the current form would take away a lot of export incentives, would impact the country’s exports.
The DTC is a much-needed move, a tax code which gives transparency and accountability, he said.
The Ministry of Commerce has fixed an export target of $200 billion by next fiscal and a medium-term target of $315 billion by 2014. For the long term, the aim is to double India’s exports as a percentage of world trade from 1.45 per cent to 3 per cent by 2020. Mr Scindia said that these targets were “realistic and achievable.”
Asked if these targets could be achieved even if the DTC is brought into force in the present form, he said that he would give his comments only after the tax code is finalised. The DTC is expected to be finalised in next six to eight months.
Source : Business Line