Global slowdown may dampen export growth prospects in 2013
R Rao, any ripple worldwide will impact India's commerce as the country's integration with the global trade has reached a high level.
Slowing global output growth has led to World Trade Organisation (WTO) cut its 2012 forecast for world trade expansion to 2.5 per cent from 3.7 per cent and to scale back the 2013 growth estimate to 4.5 per cent from 5.6 per cent.
"In an increasingly interdependent world, economic shocks in one region can quickly spread to others," WTO Director General Pascal Lamy has said.
Federation of Indian Export Organisations (FIEO) has said the year 2012 had been difficult for exporters.
"Domestic issues like poor infrastructure, increasing transactions cost and some procedural hurdles are huge challenges for exporters," FIEO President Rafeeq Ahmed said.
Sharing similar views, Rakesh Mohan Joshi, internal trade expert and Professor with India's prestigious Indian Institute of Foreign Trade (IIFT) said the ballooning trade deficit poses serious challenges to the government.
"2012 was not a good year for India's exports. Trade deficit touched an all-time high. It is matter of serious concern for the government and I do not even see 2013 as a better for them (exports). Situation may improve, but marginally," Joshi said.
He said the condition in Europe is not satisfactory and there are no signs of improvement.
"Along with global issues, domestic conditions are also not good. There is a strong need to boost investments in the manufacturing sector," he added.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel too
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