T.C.A. Ranganathan, CMD, Export Import Bank of India, on Friday said that there has been volatility across the global trade market and Indian industries should increase their export potential.
Addressing a FICCI Banking Conclave here, Ranganathan said though India’s export share to the world has gone up (0.5 per cent in 1990 to 1.6 per cent in 2012) over the last two decades, it should increase the potential substantially to reduce the current account deficit (CAD).
He expressed concerns over slow-paced manufacturing growth in India.
According to him, lack of proper direction for corporate investment strategies in India is leading to a rise in bad loans of banks. “There is something wrong somewhere. It’s time for a complete internal reorientation for the industry,” Ranganathan said.
The Exim Bank Chairman pointed out that there is a need for increasing the production capacity and boosting investments in research and development (currently R&D expenditure in India stands at 0.85 per cent of GDP).