NEW DELHI, NOV 25: Export growth is expected to dip to about 10 per cent in the second half of 1997-98 from the 11.6 per cent in the first half, the Minister for Commerce B B Ramaiah, said today. As a result, there is likely to be a small fall in the growth of exports for the whole year, he said.

Ramaiah conceded that the devaluation of the rupee to Rs 38.55 on Monday would immediately help exporters, he felt that in the long term the burden on account of imports would far outweigh the benefits to exporters.

``When countries like Japan can sustain and even increase exports despite the fall of the Yen against the US dollar, why can't we? Devaluation to compete with other countries is no answer,'' he said.

During September alone, exports were valued at Rs 10,657.5 crore, recording a growth rate of 13.3 per cent over August. The figures for October are not yet available, but is expected to have been maintained at that level. However, the growth after November is expected to be dull owing to the political situation in the country.

In dollar terms, the trade deficit for the April-September period had already touched $ 2,495 million on an imports growth rate of 7.60 per cent and an export growth rate of only 4 per cent. Inaugurating a workshop on `Business and Globalisation' Ramaiah made it clear that India would insist on free movement of skilled and technical labour across the borders if there had to be no restrictions on the movement of goods and services. While the country had no objection to the opening up of financial services, that could not be allowed to affect local industry, he said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.