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Amid continued bad news on the economic front and the drubbing ofthe rupee, Commerce and Industry Minister Anand Sharma will meetFinance Minister Pranab Mukherjee to discuss issues such as rupeedepreciation, cost of credit and eurozone crisis that couldseriously impact exports in the coming months. The meeting is likely to take place before the announcement of theForeign Trade Policy (FTP) in the first week of June that is likelyto spell out the blueprint prepared by the government to counterthe serious challenges faced on the foreign trade front. "I will be talking to the Finance Minister on these issues.The government will do everything within its power to ensure thatthe exports momentum is not lost. But the constraints of resourceswill also have to be kept in mind. We have to take a balanced viewof the situation and the concerns expressed by the stakeholders andwork out a solution that ensures that import bill does not outpaceexports," he said after a meeting with the stakeholders andindustry representatives of various export sectors. Mr. Sharma stressed the need to work out a deal with focus onlabour-intensive sectors where the concerns had a clear socialdimension on job creation. The Minister had recently indicatedgiving some sops to certain sectors, including the labour intensiveones, to cushion them from the slowdown in Western markets. Thegrowth in exports has been a bit of disappointing, indicating thatthe economic slowdown in Western nations had already started havingan impact. In April, exports of gems and jewellery and readymade garmentscontracted by 25.7 per cent and 9.7 per cent to $2.6 billion and $1billion, respectively. In March, exports contracted by about 5.71per cent year-on year. The economic crisis in the U.S. and Europe has hit Indian exportsbadly. Both these markets account for about one-third of thecountry's total shipments. The rupee has hit its record low levelof 54.60 against the dollar intra-day on Thursday. "Allissues will be factored in, when we take a view on FTP. Exportsgrowth momentum should continue given the pressure on currentaccount and trade deficits," he added. He also said that thegovernment would continue its efforts to increase exports in newmarkets such as Latin America and Africa. Chairman of Apparel Export Promotion Council A. Sakthivel said thatthe government should look urgently on reduction of transactioncost and lowering of interest rates to boost exports. Besides thevarious export promotion councils, representatives of CII and FICCIwere also present at the meeting. We are high quality suppliers, our products such as China Double Shot Molding , Magnesium Die Casting for oversee buyer. To know more, please visits CNC Machining Parts.
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