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Commerce Minister admits India’s under performance in trade with BRICS nations

28 Mar 2013 Evaluate

Commerce and Industry Minister Anand Sharma, while addressing the fifth BRICS Summit, has admitted that India unfortunately has not performed to expectations in the fields of trade and other commercial ties with member nations of BRICS (Brazil, Russia, India, China and South Africa). Out of the proposed $500 billion trade expected between the BRICS nations by 2015, the countries had crossed the $319 billion mark.

The Indian Commerce Minister said that he was not fully satisfied with India’s trade of $ 100 billion with the other BRICS nations and considered it to be an underperformance, saying that it is much below the country’s potential. Though, Sharma added that there are unexploited opportunities, and we are beckoning our business leaders and our institution builders to grab these and enhance the export.

Presently, the government is focusing to enhance the export as the waning export is hurting the country’s trade balance and the current account deficit, putting pressure on the currency. Government is looking at ways to increase exports through the Foreign Trade Policy (FTP). The annual FTP is expected to come in the first week of April.

To increase the country’s export, the commerce ministry is examining a number of proposals from the industry that include extending direct cash incentives to exporters of a larger number of products to targeted markets. The government is also considering an export development fund with a likely corpus of about Rs 5,000 crore to Rs 10,000 to help the exporters in their marketing initiatives and interest subsidy scheme to more export sectors in the upcoming foreign trade policy (FTP).

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