Recovery prospects in global markets are still fragile, it argues
PTI | February 25, 2010
The pre-budget Economic Survey, presented in parliament on Thursday, favoured providing further stimulus for the exports sector, arguing that the recovery prospects in global markets are still fragile.
It said that despite some improvement in global trade environment, the downside risks makes it imperative for the government to reform policies concerning imports as well.
"The downside risks for world and the Indian trade lie in the fact that though the fall has been arrested, both output and trade recoveries are still fragile given the fact that the recovery has been pumped up by the stimulus given by different countries, including India," the Survey said.
Amid the debate on withdrawal of the stimulus, including speculation of a possible across-the-board roll back of cuts in excise duty and service tax, the document suggested further reduction in excise for export oriented industries.
For the merchandise sector, some fundamental policy changes are needed "...these include further tariff reforms by lowering the peak duties (custom) from the present 10 percent to 7.5 percent, reductions of tariffs on all capital goods to a uniform 3 per cent and further reduction in excise duties to make exports and industry competitive."
The government had cut excise duty from 14 per cent to eight per cent and service tax from 12 percent to 10 percent in the wake of the global financial slowdown.
India's exports, after falling for 13 consecutive months since October 2008, turned positive from November 2009. But in April-December period, exports were down by 20.3 percent.
However, the Survey pointed out that the early signs of pick-up are due to low base and the export value is even lower than the absolute value of the pre-crisis period.
It also expressed concerns over the leading economies like the US resorting to protectionist measures.
"The high employment rates in some developed countries forcing even world leaders like the US to resort to protectionist measures, as in the case of the recent tax breaks for companies giving jobs in the US, could give wrong signal," it said.
The Survey further said that the extraordinary financial stimulus given by different countries, including India, have contributed to the recovery.
Imports growth of some of India's trading partner like China, Hong Kong and Japan were encouraging in December 2009.
While China's imports from India grew by 71 percent in December 2009, Japan imports went up by 3 percent. Growth in Hong Kong imports from India turned highly positive at 58.5 percent.
"Even in case of the US, which is still registering negative import growth, the extent of negative growth has become less, with imports from India growing at (-) 10 percent in November 2009," it said.
Basking in the success of the new web series, ‘Scam 1992: The Harshad Mehta Story ’,on SonyLIV, the OTT platform from Sony stable where the lead actors are new faces, NP Singh, MD and CEO of Sony Pictures Networks, has said that the script is the new hero. He credited the s
India’s trend of steadily decreasing active cases continues unabated. The number of Active Cases has remained below 10% of the total cases for the last three days, suggesting only one in 10 cases is active Covid-19 patient. The active cases comprise merely 9.29% of the total positive c
The union cabinet chaired by prime minister Narendra Modi on Wednesday gave its approval to pay productivity linked bonus (PLB) for 2019-20 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, and ESIC, with a financial implication of Rs.2,791 crore.
India has leaped across several significant milestones in its fight against Covid-19. The new confirmed cases in the 24 hours to Tuesday morning have fallen below 50,000 (46,790, to be precise) for the first time in nearly three months. The last time the number of new cases was close to this level was on J
Legendary film star and politician Shatrughan Sinha has said that friendship in Bollywood is limited to onscreen, and there is no unity and some news channels are taking advantage of this situation. “Groups within the industry or their supporters may sometimes come together for some c
In India, only 2.40 million out of an estimated 2.64 million cases of tuberculosis were reported to the government, that is, 2,40,000 TB patients went unreported, in 2019, according to the WHO Global Tuberculosis Report 2020. The reporting of TB cases, however, has significantly increased ov