Tuesday, March 18, 2008

Exports to rise by 20% in 2007-08 despite global slowdown, says kamal nath

by Jo Black

India’s exports in the in 2007-08 are expected to reach about US$ 155 billion, a 20% increase over the previous year, despite signs of a global economic slowdown, Mr. Kamal Nath, Indian Commerce and Industry Minister, has said.

Speaking to media persons on the sidelines of the 77th AGM of the International Chamber of Commerce (ICC), India, an allied body of FICCI, Mr. Kamal Nath said, against a target of US$ 160 billion for 2007-08, exports reached a level of US$ 111.1 billion during April-December 2007. If the present trend of growth continues, I am confident that exports during 2007-08 would reach a level of US$ 152-155 billion, despite the adverse global economic situation.

Addressing the ICC, India AGM, Mr. Kamal Nath said the rupee has been appreciating against major convertible currencies, particularly the US dollar since September 2007, adversely impacting Indian exports, particularly in products with low import intensity and high employment content like textiles, leather, handicrafts, marine products, etc. We are look at providing some relief to some areas which are essential for a quantum growth in exports, he said.

The Minister said the biggest concern for developing economies in Asia and rest of the world was the rising food prices. How do countries which do not have the ability to import cope with this situation? he asked.

Mr. Kamal Nath said, while the global economic slowdown fuelled by fears of a recession in the US will inevitably impact other parts of the world, the momentum of growth in East Asia will certainly temper the slowdown in the US economy.

Mr. Marcus Wallenburg, Chairman, ICC & Chairman of SAAB and SEB, in his address, noted that the turbulence of the financial markets had led to uncertainty and lack of confidence of the market participants. This was because globalisation had led to dependence on global supply systems. Further, SMEs which had been drawn into the multilateral trading system have locked in to the global supply systems, adding to their vulnerability. It was therefore very important to see a happy conclusion of the Doha Round, he pointed out.

Mr. Saroj Kumar Poddar, President, ICCI, India, pointed out that with the changing financial architecture in the Asian region, with inflows into Asia rising from the rest of the world, our financial integration is only going to increase. Therefore, we would see some impact on our economies following adverse developments in the West through the channel of financial markets as well. The downward movement in the Asian stock markets in January this year and again over the last few days, in tandem with markets elsewhere, corroborates this trend, he said.

 

 

 

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