This refers to ‘Export vulnerabilities’, January 12. It has been rightly pointed out that Indian exports are vulnerable to the currency movements in the foreign exchange market and the performance of the global economy. The advantage of a depreciating rupee has been nullified by the recession in the US and the Euro zone besides other developed economies where major Indian exports are carried out. A host of stimulus packages have failed to accelerate the sagging growth in exports.
It is time we thought of diversifying our exports to the developing world especially in the south American and African continents and consolidating our trade in south Asia. It is also true that the infrastructure bottlenecks have made our export-costing inefficient and affected the margins. Competitiveness is the mantra that could place Indian exports back on the track and just fiscal and monetary measures are not really producing results.
R N Sinha, Mumbai