Soothing effect to come from the Foreign Trade Policy?

Bikky Khosla | 08 Apr, 2008
The current global market equation calls for better coordination between exporters and the Indian government. Raw material prices are going through the roof and dollar depreciation against the rupee is today a perpetual nightmare for the export community.

If the rectifications in the way we have been doing business do not come sooner than later, in all probability there are chances of missing the export target set for the fiscal 2008-09.

The exporters need to make the much-needed adjustments in their operations based on changing consumer taste and market trends. They need to streamline their manufacturing facilities, upgrade production techniques, take into consideration the fast growing competitiveness of other nations.

The authorities too have to address key issues including maintaining an exchange rate range favourable to exporters, moderating taxes at various levels, improving infrastructure, reconsidering certain schemes, and checking the frequent fluctuations in the prices of raw materials.

The Commerce Ministry has been sympathetic to the cause of the exim community and should now come up with certain incentives for exporters to tide over the losses incurred due to the appreciating rupee, fluctuations in the prices of raw material and other related drawbacks.

The ball has started rolling with the government extending the Duty Entitlement Pass Book (DEPB) at the beginning of the financial year. The same balming effect is expected from the forthcoming Annual Supplement to the Foreign Trade Policy. A couple of days from now we'll know.