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The Indian exports may continue to remain restrained this year in the midst of a dismal outlook for the trade sector and world trade volume output which is set to decline by 11%.
Citing the recent International Monetary Fund (IMF) projections of the negative growth of 1.3% in the world output and falling demand for import from the major trading partners, the survey said that the export of Indian goods and services will have a grave impact.
India's merchandise exports registered a decline for the second straight month during May with the value of shipments 29.2% lower at $11.01 billion when compared to the $15.55 billion it had earned during May in 2008.
The merchandise exports showed a dip by 33.2% to $10.74 billion in April.
A revival in the exports was expected in 2010 as the IMF had projected the world trade volume to grow by 0.6% and the world output by 1.9%. It said that a significant fall in the prices of petroleum and commodities can lead to a positive impact on the import and industrial sector.
A revival in the exports was expected in 2010 as the IMF had projected the world trade volume to grow by 0.6% and the world output by 1.9%. It said that a significant fall in the prices of petroleum and commodities can lead to a positive impact on the import and industrial sector.
The survey also suggested that the government should avoid the protectionist measures and instead bring reforms to the sector.
Among suggestions to boost the trade sector, the survey proposed:
- Continuation of the reduction in customs and excise duty
- Streamlining of existing export promotion schemes
- Giving special attention to export infrastructure
- Rationalisation of port service charges
- Weeding out unnecessary customs duty exemptions
- Checking proliferation of special economic zones
