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Indian exports still lagging behind SE Asian countries

Indian exports still continue to take a beating after 50 years of Independence, while neighbouring countries in Southeast Asia are in the process of dominating India and have crossed the US $100 billion mark.

"We are still delivering US $30-34 billion worth of goods and services to buyers around the world, when neighbours like Malaysia, Indonesia, Thailand, and China have crossed the US dollar 100 billion mark. Compared to the 6 per cent share in world market during Independence, now the share of exports is less than one per cent, Ramu S Deora, president of the Federation of Indian Export Organisations said, while expressing concern over the export scenario.

"The growth of exports peaked at 22 per cent at one time, stayed at around 18 to 20 per cent a few years back, but now has declined to just four per cent. The high fluctuations in export growth rate cannot be attributed to fluctuation of overseas demands or to the lack of effort on the part of exporters," he said.

Deora said that while a discussion of many of the policies or financial inadequacies can help pinpoint the specific causes for India's poor show last year, lack of infrastructure facilities is one major cause for the economy's slowdown and the sluggish exports.

He felt the infrastructure development fund set up recently to attract Indian and foreign investments for development of infrastructure, should have been done much earlier.

The enormous cost of poor infrastructure on our export effort has suddenly been realised now, and policy and administrative decisions are being taken to make up for the lack of wisdom of the early years, he opined.

The FIEO chief pointed out that 50 years in the life of a nation like India's in the modern times have a tremendous significance which can seen in India's achievements over the years. "These years, and the solid foundations laid in our social, political and economic spheres so far gives me tremendous confidence that we are now geared to accelerate our activity to produce and deliver to the world the best of goods and services available anywhere," he declared.

"This golden jubilee year of our Independence has appropriately thrown up a leader of Prime Minister Inder Kumar Gujral's stature who not only understands power play among nations but also the crucial role of foreign trade in the creation of the country's economic wealth," he said.

Deora said the Gujral was the first prime minister of India to have discussed with top exporters and leaders of trade and industry the ways and means to bring about a quantum jump in exports, and also to expeditiously act upon their suggestions.

The FIEO president said the establishment of a high-powered committee of secretaries under the chairmanship of the cabinet secretary to oversee exports is the first concrete step taken by any prime minister towards strengthening the government-exporter partnership for raising exports.

The prime minister's discussions with industrialists, and decisions taken by him on the country's infrastructural needs is another example of his deep involvement with the task of making the country an advanced economy, Deora added.

UNI