If exporters sustain the export growth observed in October for the rest of the year, India “will end the year on a good wicket,” according to Finance Minister P. Chidambaram.
The government will support exporters, “the goal is to maximise exports and now is the best time,” he said.
Export growth doubled to 13.5 per cent in October as compared with the previous months. Growing export is key to containing the Current Account Deficit as there are limited options to cut down on imports.
Due to WTO imperatives and the needs of import-dependent industries, inflow cannot be curbed beyond a point, he said.
The trade balance as of October was about $90.7 billion against $190 billion for the whole of last year. If exports could be increased in the coming seven months it would be possible to contain the trade deficit at about $150-155 billion. India would still be on ‘good ground,’ he said addressing members of the Federation of Indian Export Organisations.
Faster clearance
The second half of the year usually sees export growth and with the rupee depreciation now would be the best time to maximise exports, he said.
The government is introducing Risk Management System for export cargo to bring down the dwell time of goods in customs processing at the ports.
Over 70 per cent of the cargo will go through with minimal checking based on the track record of the exporter and the export station. This will bring down the dwell time to a few hours instead of days.
The system is in vogue for imports and will be rolled out for export cargo, he said.