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We Will Be Able To Post Upwards of 8% GDP Growth This Fiscal, Says Scindia
By ugesh sarkar, Section Business & Industry
Confident of meeting the $200-billion export target'.
In order to get the ground reality on the foreign trade front to dispel any doubts, Business Line spoke to the affable and articulate Minister of State for Commerce and Industry, Mr Jyotiraditya M. Scindia. Not the one to countenance the canard that UPA-II is less rooting for reforms, Mr Scindia contends with zeal hat "Reform is very much a part of our agenda and it is very important to look at process as opposed to events. Just because a one year milestone has been crossed does not mean that a couple of reforms should have taken place. The process is very much on. Just as in UPA first five-year tenure, we will have major milestones and high economic pace to make development much-more inclusive and reform-oriented agenda in the current tenure". Following are the excerpts from Mr Scindia's own words: "We have done commendably on the export front in an environment of extreme volatility -- last 18 months had seen probably the most turbulent time that the world had witnessed since the Great Depression of the 1930s. Keeping in mind the context of the turbulence that we have encountered, our policy is starting with the pump-priming of the economy with the stimulus package of Rs 1.90 lakh crore, followed by our FTP, which we have announced August of last year, where we looked at the new direction that need to be given for exports -- away from our traditional markets to much more developing markets such as Africa, Latin America, Oceania and Asia, I think all these steps combined have been able to close at $176 billion for 09-10, which is down by 4.7 per cent over the previous year. Source: www.thehindubusinessline.com We will be able to post upwards of 8% GDP growth this fiscal, says Scindia Click On "Full Story" For More...
This is in contrast to the international scenario where world trade had shrunk by 14.4 per cent. India has done quite well in a relative sense, keeping into account the global context.
However, I would like to sound a note of caution. The fact that we are coming up from a very low base of the previous year, the base-effect is giving this advantage.
Exports Still, I am confident that we will be able to meet the export target of $200 billion for the current fiscal, an increase of 13 per cent from the previous year. What concerns me is what is happening in the EU, specifically not only in Greece or in Spain but also the multiplier effects the crisis may have on adjoining economies, thereby, affecting our trade. We need to keep a close watch on this.
Industrial front On FDI, there are many issues under discussion -- whether it is FDI in defence or FDI in retail and all stakeholders will be taken on board and consultations are being held. We firmly believe that there are both pros and cons to each side of the argument and we must take judicious decisions based on what is advantageous to India. This will be possible based on the inter-ministerial consultations we will have in the next couple of months.
Retail segment India has a tremendous potential in the agro processing area. We have about close to 90 billion tonnes of milk production in the country. We are the second largest producer of fruits and vegetables about 150 million tonnes. We are the third largest producer of foodgrains at about 220 million tonnes. But we only process about close to 3-4 per cent of that, which implies, therein, lies, the huge opportunity. So retail, especially, in the food processing area is what we are looking at. But we must keep in mind the interest of small retailers and kirana shops and we will work out a game plan.
On cutting down transaction cost to trade, I have set up the project management group of the task force that I chair with 40 people and specialists in six verticals ranging from agriculture, readymade garments, engineering to handicrafts. We have come up with 50-60 steps that need to be taken to reduce the transaction cost and we monetised that close to $2 billion. Some of them are in the ambit of my Ministry while most others are with the Ministries of Finance, Agriculture, Railways, Shipping and Civil Aviation. I met the Finance Minister and the Minister of Shipping. I intend to release the compendium in terms of our conclusions in July and it is my desire that we must also announce the measures at least of my Ministry and hopefully other Ministries will come forward and announce their measures. I am very eager that we do this in a holistic manner."
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With the new Foreign Trade Policy (FTP) in place since last August, hopes run high that the isolated episode of lackadaisical trade performance in the last couple of years would not recur.