Union minister for commerce and industry Mr Anand Sharma said that the government will provide stimulus measures to absorb the impact of moderation in exports following a rating downgrade of the United States by Standard & Poor's.
Mr Sharma while releasing ASSOCHAM’s Africa manual titled Opportunities Unlimited said that the current volatility in global markets seems to be a temporary turbulence and Indian exports should grow more than 25% in the current financial year 2011-12.
Mr Sharma said that “There is no question on wavering on economic reforms. We have taken many initiatives in the past. The government will ensure that cost of credit to the industry is within manageable limits. India is carefully monitoring the deepening global economic crisis but the situation has not reached a stage for us to become anxious."
Despite uneven and wobbly recovery in the United States and uncertainty in the European Union, India's merchandise exports rose by 38% to USD 246 billion in the last fiscal year. The minister hoped the figure will nearly double to USD 500 billion dollars by 2014.
India generated foreign direct investments totaling USD 14 billion in the first quarter (April to June) of 2011-12.
Mr Sharma said that “We live in an inter-connected world. There will be some impact on other regions. But India remains a potentially good growth story with a strong domestic market driven by 1.2 billion people. The GDP will continue to grow at a rate of 8% as it rests on robust fundamentals.”
Meanwhile, Mr Dilip Modi president of The Associated Chambers of Commerce and Industry of India said that the country should expand trade ties with Africa. With a combined population of two billion people, both regions are among the fastest growing.
He said that “The bilateral trade which stood at USD 41 billion in 2007-08 (with India’s exports valued at 16 billion dollars and imports at USD 25 billion ) has the potential to cross USD 50 billion this year. India’s engagement with Africa cover an entire spectrum of activities like investment collaboration, technology transfer and skill development.”
Mr DS Rawat secretary general of ASSOCHAM said that the growing partnerships between India and African nations are an indicator of Africa’s growing relevance on the world stage. He said the continent has rich deposits of minerals and hydrocarbons.
(Sourced from expressbuzz.com)
