'Falling inflation and rupee depreciation will boost exports'
The Dollar Business Bureau Govt was urged to continue Rupee Export Credit Interest Rate Subvention Scheme’ for selected sectors to encourage domestic MSMEs India’s export competitiveness has been eroded because of the steady real appreciation of rupee, said an ASSOCHAM study, while recommending steps to encourage domestic MSMEs and revive falling exports. Global experience shows that 10-15% real devaluation could be a shot in the arm for an export surge, while a real devaluation of the order of around 10% through a combination of falling inflation and allowing rupee to depreciate may provide much needed boost to exporters,” said ASSOCHAM in a study. In the study-‘What’s behind India’s Declining Exports’, the Associated Chamber of Commerce and Industry (ASSOCHAM) urged the ...
The last FTP scored just pass marks. A 40% target-achievement wont do this time!
Steven Philip Warner | @TheDollarBiz Policies cannot be judged unequivocally by outcomes. Under such ambiguity, let us say that in many-a-case, failure becomes the twin of a noble impulse, and criticism is the outcome of bold decisions at a macro-level. But there is an indicative measuring rod. A number that has a soul to appraise performance vis-a-vis promise. When FTP 2009-14 was released, the-then policymakers had set a target of crossing the $500 billion mark in India’s exports by FY2014. The target therefore called for $315 billion in incremental annual exports. By FY2012, it had become profoundly certain that India’s FTP lacked punch – perhaps some real big incentives in the form of credit scrips or drawbacks ...
