Rebound in exports to help recovery in IIP
Continuous growth momentum in exports scenario will help recovery in IIP in the coming times says Mr. Suman Jyoti Khaitan, President, PHD Chamber of Commerce and Industry in a press statement issued here today. Though the recovery in exports is expanding month after month but the recovery in IIP is still in the sluggish trajectory, which is expected to recover in the ensuing months on improving external demand conditions. Domestic demand conditions are also expected to rebound sharply on good agriculture production growth. It is very inspiring to note that according to the first advance estimates, India is estimated to produce 129.32 million tonnes(MT) of foodgrains in the current kharif season which are higher by 8.75 million tonnes as compared to the average production of 120.57 million tonnes last year. In addition, the sowing of Rabi crops so far stands at around 109 lakh hectare during 2013-14 as against 61 lakh hectare during 2012-13 with the remarkable growth of about 78%.All these developments exhibiting good growth numbers at agriculture front will help to revive domestic demand conditions and industry sector to rebound in the positive scenario, says Mr. Khaitan.
Narrowing trade deficit during April-October 2013-14 at about US$91bn from US$112bn in April- October 2012-13 is inspiring on expanding exports trajectory and squeezing imports scenario. Cumulatively exports recorded growth of about 6% during Apr-October 2013-14, while import clocked a growth rate of about (-) 4% during the said period. It will help CAD to improve and rupee to recover further in the coming times.
Going forward, higher growth of exports is crucial for improving the trade deficit scenario. Exports competitiveness, facilitative policy environment, incentives structure and world economic growth has a significant influence on India's exports performance. Trade facilitation activities such as ports, cargo and easy regulatory clearances could be improved to enhance India's exports further as demand conditions are expected to revive in advanced world and India has opportunity to capitalise on emerging economic scenario.
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