The continued sharp deterioration of in the export trade is best brought out by the numbers emerging from OECD countries and the Bricks. Trends in dollar value of exports show in both the OECD countries and Bricks, exports continue to shi8rk close to one-third. It is also observed that the export deceleration has slowed down in the OECD countries in the recent months, the scenarios seems to have worsened in the Bricks.

The shrinkage in Bricks exports was not as immediate as in case of OECD countries. Numbers for Oct. 2008 indicate only India took an early hit among the five Bricks countries with its exports declining by 11.5%. Recent figures for July show that India has come on top with export shrinkage declining to just 19.4%, which was slightly better than 23.2% decline registered by China.

There have been repeated demands on the part of garment exporters, generally well based on the factors, which cannot be attributed to their failure. The cause for appreciation and depreciation of Indian Rupee is certainly much beyond them, but which certainly affects them rather seriously, both in terms of maintaining their competitive edge and as also in the matter of receivables. True, no Government can assure insulation of their currency vis--vis other countries in the world, save in China earlier when it had frozen Yuan, yet all Governments have been positive-and quickly-responding to the fluctuations in their currency valuation to offset any adverse impact on the garment exports. Even the mighty China has done it more often and more liberally, as pointed out by Rakesh Vaid, Chairman, AEPC. I think the demand made by Rakesh Vaid for The drawback rates to be increased from 8 to 10 per cent at present to 13.25 per cent of the FoB value is well based on logic, reason and above all public interest.

What is the way out of this impasse? To my mind, the Government should announce similar and prompt enhancement of their duty draw back, to which no reasonable mind can disagree.

Here I refers to the author of the article