Addressing FIEO members here on Tuesday, Sinha said his job as the finance minister will become difficult if the current account deficit goes up. He was addressing FIEO's seminar on `How the Indian exporting community can face the emerging global challenges to exports.'

He said the government would reduce the period of duty payback due to exporters by a month to 60 days and also pay penal interest from the 61st day. The decision to pay its dues to exporters under various duty payback schemes has already been taken by the government and an amendment to the law in this regard was pending, he added.

While assuring the exporting community of meeting all their demands, Sinha exhorted them to arrive at some consensus on various irritants faced by the several sectors of the trade and industry.

He urged the exporters to become quality conscious so that the buyers are confident of Indian products. Emphasis should be laid on delivery schedules, he added.

He pointed out that India was a marginal player in the international market and faced the possibility of being pushed out during troubled times as those who have more at stake will somehow manage to stay around.

Ruling out further depreciation of the Indian currency, he said, "Currency depreciation is not the solution for promoting exports." He added that depreciation of the rupee will not help in achieving the goal as the buyers abroad will seek more discounts on this ground and he will not allow the Indian importer to take advantage of the situation.

``The present international situation is not very bright. There was a belief that the south-east Asian crisis will be behind us has not happened. Even Japan and Russia are facing crisis,'' said Sinha.

However, despite the setbacks, India withstood the pressure and now the other countries are viewing India as an island of tranquil and are looking at us with hope, he added. He appreciated the roles of all previous governments for both following and not following certain policies which had helped the country during this turbulent period.

Talking about Asian tigers who have been badly mauled in the current crises, Sinha said, "We were given the impression that we are an inferior race, but what has happened to the tigers?" Sinha asked.

He cited the example of the Resurgent India Bond issue in which 75,000 NRIs exuded confidence by pouring in over $4 billion as against the target of $2 billion. Sinha said the RIB success vindicated the fundamental strength of India by Indians in spite of a downgrading by Moody's.

Sinha said this gesture had established the country's credibility. He pointed out that India has never defaulted on even interest payment and if that did not happen in 1991, when the country was in the midst of its worst crisis, it will not happen now, he said.

About the suggestions presented by the FIEO president Ramu Deora and others, Sinha said that some of them will be receiving the government's attention while others have already been attended to.

Sinha exhorted the exporting community to guide the ministry so as to solve the problems faced by them, checking at the same time that no large gaping holes for revenue loss are left. He laid emphasis on changing the mind-set of the taxpayers as well as collectors.

He said customs should not become a bottleneck but a facilitator to the exporters. He said that he had asked the filed formations of the tax departments to be taxpayer-friendly and assured the trade that the regime was not in combat with the trading community.

During an informal chat with mediapersons, Sinha denied that the move to allow imports of over 2,000 items under the open general licence from the Saarc countries would encourage largescale dumping of these consumer goods. He said that eventually the Saarc nations will be our partners in trade.