It’s too premature to even think of exit route

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: Commerce minister Anand Sharma is clear that the current stimulus measures must continue for exports to stablise. He is also clear that the present FDI regime does not need a revisit right now. In a freewheeling chat with FE’s Rituparna Bhuyan, he says his first challenge was to tackle dipping exports and at the same time to clear India’s image as a deal breaker in the Doha Round of world trade talks. Excerpts:

Till when can the stimulus measures continue?

It is too premature to even think of exiting the contra-cyclical measures for the industry and export-oriented sectors. Only when we are sure that we have moved in to the positive territory and stay there for some time, we should think of it. As a policy, we think our incentives and stimulus have done better as compared to most other countries. It is very clearly reflected in our industrial growth. Some of the core sectors have been in double-digit growth, automobiles have done well, so have FMCGs.

What is your outlook on exports?

I am pretty optimistic that in the coming quarter, which will end by December, we should be closing the gap, and in the last quarter, we would have crossed over as far as foreign trade is concerned. But that does not mean that we have to become complacent. We have to be vigilant and respond to have capacity and ability to respond if required.

It’s been five months in office. What is your assessment on India’s exports?

There has been a visible improvement in exports over the steep fall that started last October. There was a period when exports were falling every month at the rate of 33 or 34%. This was primarily because of the economic crisis engulfing the world and the contraction of major economies. Which have been the traditional destination for Indian exports - the US , Europe, Japan. It would not have been prudent or wait for major economies to turn around because it was difficult to wait for anybody to predict when these economies will return to the previous levels. But there are discernible signs that the dark clouds are parting over Europe and the US. Some sun rays are peering through.

Having said that, we consciously looked at measures which would stimulate growth in the industry, specially those sectors which are integral to exports such as handicrafts, leather, engineering and electronic goods, pharmaceuticals.