Even the high interest rate regime and the overvalued exchange rate is helping the financial markets, not the real economy and export sector in particular.
India has been a major user of anti-dumping measures over the past few years; there has been a significant increase in the number of new anti-dumping and safeguard investigations initiated.An Assocham study has revealed that India's export competitiveness has been eroded because of the steady real appreciation of rupee and therefore the #
In the context of the current global slowdown, it may be beneficial for the economy as a whole if a detailed economic analysis on the likely impact of the duties on downstream user industries is undertaken, prior to the imposition of duties.
Such duties may be detrimental to export prospects, if the duties are imposed on imported inputs used for producing export-oriented goods in the small scale sector which contribute significantly to India's exports.
“Government needs to put in place temporary measures to ensure Indian exporters do not withdraw from important overseas markets during the period of downturn,” the study suggested.
“This will help Indian exporters regain market as and when recovery takes place, this could be achieved through a combination of liberal market development assistance and easing export financing. Besides, markets which are expected to recover fast (USA, Germany, ASEAN, Republic of Korea, and West Asia) need special focus,” it said.
This will also help reduce transaction costs. With profit margins shrinking globally, cost competitiveness is of vital importance. In an attempt to reduce some of the transaction costs associated with international trade, the Government has been simplifying its customs procedures over the past few years. (SH)
Fibre2Fashion News Desk – India
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
