Friday, August 7, 1998
Exports register fall despite local slump
The current export decline defies explanation. Neither of the two principal supports for export growth are working. When Manmohan Singh devalued the rupee, exports boomed. Thereafter, through Chidambaram, exports have flagged even though the rupee has depreciated.
Cliched response
The Hegde package for exports is unexceptionable, but the sops it offers are within the framework of a policy that favours production for the domestic market rather than for export. At best, the sops will mitigate the plight of exporters; reversing the export decline of the first quarter remains a distant dream.
Tackling slowdown
The continuing weakness in the Dow has given rise to fears that a bear market is in the offing. There are strong grounds for believing that US stocks are overvalued. Six months ago, analysts predicted profit growth at 12.9% for the S&P 500 universe.
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