Just in:

• Ingersoll-Rato to shut down plant • Export woes: Where the blame lies • European cues dent markets, Sensex

down over 600 points • Nestle celebrates 100 years in India • NTPC's Rs.700-crore tax-free bond issue opens on

Wednesday

Top Stories

» European cues dent markets, Sensex down over

600 points

» Arun Jaitley confident of GST rollout by 2016

» 'Indian auto sales to cushion lower sales in

BRIC region'

» Cabinet approves memorandum for cooperation

in tourism with Cambodia

» Unequal access to education drives child labour:

Study

Customs Exchange Rates

Currency Import Export

US Dollar 65.75 64.70

UK Pound 103.35 101.10

Euro 73.45 71.65

Japanese Yen 53.20 52.05As on 23 Sep, 2015

Daily Poll

Will market regulator's plan to simplify start-ups'

listing help SMEs?

Yes No Can't say

Commented Stories

» Govt. approves subsidy for 2,221 cold

storages(14)

» Govt notifies framework for revival, rehabilitation

of MSMEs(5)

» Starting an import export business: Basic guide for

beginners(5)

» Start-up India: Where do we stand?(3)

» Export woes: Where the blame lies(3)

SME Times is powered by

Search

News

Home India Industry Editorials World In Depth Nation Glob al Business India Economy SME Glossary Press Releases

Last updated: 22 Sep, 2015

Export woes: Where the blame lies

Bikky Khosla | 22 Sep, 2015

It is quite unacceptable. Exports fell

21 percent to $21 billion in August.

It is the ninth straight month of

decline and yet the government has

failed to come up with a plan to

prevent this freefall. There is a lot

of talk, but little action. Recently,

the commerce minister said that the

Centre would soon come out with

sops for the sector. This is a

welcome decision, but I wonder

what made our policymakers to wait

for so long. Time and again,

different sections of the industry

have tried to awaken them from

deep inaction, but succeeded little,

and the situation continued to

deteriorate with every passing

month.

Over the recent months, slow global

demand and low oil prices have

been cited as major reasons behind

the export collapse. There is no

doubt that these factors played a

negative role, but the government should have taken them as a challenge rather

than an excuse. If proper measures were taken at right time to cushion the

negative impacts, the situation we are facing today could be prevented to a great

extent. As a result of inaction, our non-oil exports, which fell to $96.9 billion from

$105.1 billion during the April-August period, also suffered. Now, even our

traditional sectors such as engineering and garments are getting impacted.

And do we have a long-term strategy for the sector's future? Since the new

government has come to power, there has been a lot of talk on manufacturing,

which is a must for the country to realize its overall growth, employment and

poverty alleviation goals, but I don't think double-digit manufacturing growth will

be possible without recording double-digit expansion in exports, and therefore

there is an urgent need to integrate all our manufacturing and reform initiatives

with a concerted effort to achieve foreign trade expansion.

Finance minister Jaitley recently said that our GDP growth could outperform last

year's 7.3 percent rate, but I think we have a lot to do to achieve that. Things

aren't going well with many a sector, including infrastructure, real estate, mining,

automotive, etc. Issues such as GST, land acquisition, bank NPAs, financial health

of power companies, etc. are yet to be resolved. Path breaking reforms are still in

the waiting. And finally, I want to reiterate that our export sector is badly in need

of support. A 'wait and do nothing' approach will not just fasten exports downfall

but eventually shatter the growth dream as well.

I invite your opinions.

Print the Page Add to Favorite

0LikeLike

Export woes: Where the blame lies http://www.smetimes.in/smetimes/editorial/2015/Sep/22/export-woes...

1 of 2 9/23/2015 9:16 AM

Share this on :

About Us | Advertise with Us

Useful Links | Terms and Conditions | Disclaimer | Contact Us

Export Woes where the blame liesRaj Mohan | Wed Sep 23 03:51:08 2015

It is not somebody or something to be blamed. Overall business encouragement is there

with the Government policies lack clarity and unthoughtful actions on various fronts. It is

not one zone, every aspect of business support mechanism has disconnect. Corporates try

to support freshers and SMEs in the name sacrificing for the sake of Corporates.

Agro-based industries are to be promoted, and importance need to be given to agri-sector,

then only the exports will improve. India is trying to sell all its assets and natural wealth to

the industrial world abroad. They also know, if Indians protest, they will be in trouble, that is

the reason the FDI is not improving and export orders as well.

Follow Us :

China Wholesale ImportsYou pick the product, we'll handle the supply chain.

Export woes: Where the blame lies http://www.smetimes.in/smetimes/editorial/2015/Sep/22/export-woes...

2 of 2 9/23/2015 9:16 AM