Trade Articles

The monetary crunch has erupted in a wider manner on the wall street of the USA, which in turns resulted into the triumphalism in the Indian territory. The Indian industrial sector has witnessed the turmoil in their growth rate. Now after witnessing the declination in the export growth rate along with the western economies passing through the recession period, the UPA government is all set ready to provide the package to the exporters. The government is looking into various measures with the motive of improving the conditions of the exporters. Here in the concluded World economic forum, Mr. Kamal Nath, Union Commerce minister, said "We are going to review this and looking into various measures that can help sustain exports. We are working on this package because this situation was not last there last month" Moreover, the finance minister has also admitted that there was the situation of fallout in the growth rate of the export. Adding further he stated "There is a global economic gloom. There is a slowdown in the western economies, so there is bound to be a slow down in the exports". Mr. R.S Gujral, The Director General of Foreign Trade, has calculated that the international financial crisis has severely hit the Indian export growth rate, which has fallen down by 15 per cent in the dollar terms. It has been considered as the steepest declination of the 5 years.

Mr. R.S Gujral also warned that there are full chances that the Indian exports for 2008-09 would fall before the target, which has been set at $200 billion. In the year 2007, India has crossed its export target of $160 billion. But the commerce minister has showed somehow his disinterest in the statements made and has said that there was no slumping in the exports as it was only the pacing rate at which the exports were growing and which has then fallen down. Said,"Until now, we are on the target, but next five months will show if we will meet our targets. It is dependent on the revival of the western economies.". The Indian exporters have asked for the government aid to rescue them from the international financial monetary tide, hitting their business. Due to the rising costs, the exporters called to establish the linkage between the rate of export credit with the bank rate instead of linking it with the bank's benchmark prime lending rates (BPLRs). Mr. Ganesh Kumar Gupta, president of the Federation of Indian Export Organization's, asserted that "The rate of export credit in Indian Rupee should be linked with the bank rate instead of the benchmark prime lending rate.' Further he stated, 'The post shipment credit which is presently available only up to 90 days should be provided for a tenure of 270 -365 days, keeping in view the financial crunch faced by overseas buyers". Similarly the Indian Export Promotion Organizations have also echoed their voice in favor of said organization and has demanded a rise in the credit period to reach at 270-365 days.