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: gone up by over 30% in the last one year. Crude touched a high of about $145 a barrel before coming down.
Which are the major products leading the export surge, and which markets have registered gains?
Sectors such as engineering, gems & jewellery, chemicals & allied products and petroleum products are showing remarkable growth, leading to an overall growth in exports. As far as export markets are concerned, our exports to GCC, Asia and Oceania, Africa, Latin America and Russia are showing rapid growth. We are increasing our trade with China as well, but the balance of trade is heavily in its favour.
Which are the export products that continue to lag behind despite overall growth?
Traditional export sectors like textiles, leather, marine, agro & allied sectors, handicrafts, and sports goods, which are basically dependent on domestic inputs, are not showing much growth primarily due to an increase in raw material costs as well as recession in some of the major importing nations like the US and EU. I have, therefore, requested the government to continue with the assistance extended to the export sector last year to these sectors at least until March 31, 2009.
How would the free trade agreement with Asean affect the prospects of exporters?
As president of FIEO, I am all for the free trade agreement, which is a win-win situation for exporters. On the one hand, it provides greater access to exports, and on the other, it enables us to import inputs at lower rates to increase our export competitiveness.
How do you react to the view in certain quarters that the government should now withdraw some of the export sops provided last year?
The depreciation of the Indian rupee has prompted the demand to withdraw export sops. Whether the sops should be withdrawn or not should be based on a fair assessment of the rupee’s movement in next six months. If it can be fairly concluded that the rupee will continue to be over 43 or 43.50 against the dollar in next six months, the government may consider withdrawing export sops.
However, I would also like to add that if government wishes to withdraw the subvention of interest scheme, it has to be ensured that export credit in foreign currency is made available to all exporters, particularly in the micro, small & medium enterprise category. The inflation control strategy has resulted in an increase in the PLR of banks. The PLR has...
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