Posts Tagged ‘environment’

Exporters Continue to Face the Heat of Weak External Demand

Even as the contraction in India”s outward shipments is narrowing, exporters continue to face the heat of weak external demand where a decisive 54% of exporters still complain of weak external demand conditions which create an unfavourable environment for exports stated PHDCCI.

However, according to the exporting units, the 2 most pressing problems relate to the shortage of overseas demand and low prices charged by competitor countries while the exporters find that their order books are in bad shape due to sluggish revival of demand in markets like US, Europe and Middle East.

India”s exports in October were valued at $3.19 billion against $4.13 billion in the year ago period while the downslide that started in October 2008 due to the global slowdown had touched 39% in May.

However, the pace of contraction has narrowed down with October exports falling by 6.6% compared to that in the same month last year.

On the other hand, many exporters felt that the new Foreign Trade Policy would not help them while exporters find that many of their problems, related to high cost of export credit and un-rebated state taxes and duties, have not been addressed in the FTP.

World Trade Organization (WTO) Chief Says Hopes of Doha Deal are Uncertain

The World Trade Organization (WTO) chief insisted members to resist protectionist pressure in the wake of the economic crisis, but said hopes of an early deal to free up international commerce are uncertain.

However, he said that in February this year, the global economic downturn was peaking while less than a year on; progress has been made but is not yet out of the woods.

Meanwhile, he said that the volume of world trade this year would decline a little more than 10%, which is unprecedented in modern times while in this environment, pressure for protectionist actions with their illusory gains for the domestic economy, will not necessarily diminish any time soon.

Further, success in completing the Doha round of trade talks next year as scheduled was vital to signal business and consumer confidence, and would strengthen the hand of governments as they confront protectionist pressures
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On the other hand, this will not occur unless they are all ready for heavy political lifting at home while there would be a “crunch time meeting” in the first quarter to check if the goal was attainable.