Government is planning to explore new markets for export
August, 18th 2009
Union Minister for Commerce and Industry, Anand Sharma said India is looking forward to new customers for overseas sales. It is because US and Europe had damp the demand for products of India.
On Monday, in a meeting at New Delhi Sharma said 60% of the traditional export markets of India are still under recession. India is preparing to expand the diameter of its market to secure the export rate in a competitive position.
The most terrible global recession since the Great Depression has lowered the demand for the Asian products. It has almost curtailed down the rates of the demand of the products. The rate of export is declining day by day and due to this condition it is weakening the economy of India.
Mainly the companies like jewellery, textiles and also leather has been affected much more in its export as well as in its production process due to the decline in demands for these products. As per the Central bank the economy is gradually declining and the bank expects to expand at the slowest pace since 2003.
Sharma said that on 27th August Trade Ministry will announce more measures for the exporters in the policy statement. The rate of export in India has dropped by 27.7% in June from a year earlier to $12.8 billion which is the ninth consecutive monthly decline.
In a discussion with the Finance Minister Pranab Mukherjee, Sharma said that the aim of the foreign trade policy is to provide relief to the labour intensive export sectors.
Mr. Mukherjee had already announced few relief measures in his 6 July budget session which is meant for the exporters of the country. It also includes the extension of deadlines for cheap loans and at the same time providing them fiscal assistance to develop new overseas markets.
On 3rd August the Government declared that in comparison to previous year in June, Indias exports had quarter declined 31.3% to $35.4 billion. Again Sharma said on 8th July that decline in the overseas sales have resulted in companies cutting 500,000 jobs in 10 industries.
India is also depending on trade agreements with other nations to boost up its exports as the global recession drags on demand.
Last week India had signed an agreement with the 10-member Association of South East Asian Nations which is the first step to move in trade between the to increase as much as $60 billion from $47 billion last year.