Thaindian News

New Delhi, Aug.24 (ANI): Union Minister for Commerce and Trade Anand Sharma said on Tuesday that the country was planning its next export sector review by the end of 2010.

India on Monday offered incentives to some exporters to help them tide over an uncertain and “fragile” global economic recovery, but said fiscal consolidation might not allow continued support in the future.

Speaking at a seminar on “Foreign Trade Policy” organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) in the national capital, Sharma said: “Yes, we will have a sectoral review again. Like last year, we had two sectoral reviews, you would recall, what we did in our Foreign Trade Policy, and on 27th of August, I had said that we will have the reviews beginning mid-November. We did so, and by December, the sectoral reviews were over. On 12th of January, we had come out with some more measures or incentives for sectors which needed support.”

The Commerce Ministry has already conducted two sectoral reviews in November 2009 and April 2010.

Sharma also informed that India was aiming to increase its share in global trade to 200 billion dollars.

“For a country of India’s size, its resources, especially the human resources, the spirit of innovation and enterprise, our share is abysmally low in the global trade. This has to change. We had set very modest targets, because of the uncertainty of 200 billion dollars this year, looking at a growth of 15 percent, and thereafter adding 25 percent every year to double India’s trade,” Sharma added.

India’s exports, which make about one-fifth of its economy, returned to double-digit growth in November after last year’s prolonged slump.

However, the pace of growth in the sector slowed to an annual 13.2 percent in July from 30 percent a month ago, reflecting a dampening base effect and demand contraction in Europe and the United States, with the government forecasting an uncertain outlook for the sector over the next six months.

The Union Minister also said that if India wants to grow, it needs to find its rightful place in the global economy. India cannot become a leader by insulating itself, he added.

“Sixty percent of the global economic trade is taking place from the developing countries. Asia is contributing half of the global economy, and I am given to understand that in less than a decade, the big countries will be contributing more than fifty percent of the GDP growth of the world. So, therefore, we need to engage with these regions, that’s why we stepped out. I mentioned yesterday to enter into free trade agreements,” said Sharma.

Sharma also said that India remains committed to successful completion of the Doha round of WTO talks.