JOIN USExport sops on till turnaround, says Scindia
“If we continue with the polices in terms of assisting exporters... as long as we see those numbers climbing every month in an environment around the world where output and trade is shrinking, I think this is reassuring sign,” Minister of State for Commerce and Industry Jyotiraditya Scindia said on the sidelines of a CII function here.
Though exports shrank by 31.3 per cent in the first quarter of the current fiscal over a year ago period, the shipments have been increasing by value on sequential basis from April through June.
The export cargo was valued at US$10.74 billion, US$11.01 billion and US$12.81 billion in April, May and June, respectively, according to the official data. The five-year Foreign Trade Policy, to be unveiled on August 27, is expected to give incentives to Indian exporters to widen their global markets beyond the US, the EU and Japan in the face of the economic crisis in these key destinations. Commerce and Industry Minister Anand Sharma had said on Monday, that the trade policy statement would incentivise exporters who look beyond the US, EU and Japan.
Modest rise
A modest rise in export value on sequential basis is itself a consolation for the government. “If you notice, percentage number (from a year ago period) is down but the actual figure is increasing month on month. That to us is a reassuring sign,” Scindia said.
Commerce Secretary Rahul Khullar took consolation in the fact that only exports but imports are declining leading to a sharp drop in the trade deficit.
“Basic issue is that we are getting contraction in exports. We are also getting larger contraction in imports,” he said.
Imports were down 36.5 per cent during April-June period resulting in a slash of trade deficit to US$15.5 billion from US$28.64 billion.