India needs to export more value-added goods: govt

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Namrata Kath Hazarika | 13 Oct, 2008
Acknowledging that India's increasing trade deficit is not a good indication, the government has said that export of value-added goods need to be given priority.

"India's trade deficit is increasing every year by leaps and bounds," says Dinesh Sharma, Joint Secretary , Ministry of Commerce and Industry in the national capital recently.

"The matter today is that most of our exports have gone up. Cotton exports have increased a lot, sugar export has gone up considerably too. However, all these are primary items. Instead of primary items we need to export more value added goods," he told reporters.

He also pointed out, "Our trade deficit last year was $16 billion and before that it was around $9 billion, but it could have been double of last year nearly...$30 billion or would have crossed the estimated amount. Undoubtedly, trade deficit is going up every year by leaps and bounds, but this year it has not increased so fast."

"We usually export raw materials and what comes in is finished products, which creates trade imbalance. We need to make this trade imbalance as less as possible. However, we need to export more value-added products and not just raw materials," he commented.

He said, "The trade deficit of India has gone up immensely during the years. As this year, the growth of our trade deficit is less as compared to last year's level, it is requisite to take certain steps," he added.

Further he opined that "trade deficit has to be reduced...it should not go up. Our trade deficit is growing so fast and so large that if we do not take any correct measures than it might become unbearable in the coming years."