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Current economic situation calls for intelligent planning
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Bikky Khosla | 22 Sep, 2009
Considering the current fiscal situation of the government, I think no more sops will be made available to the industry in general and the export sector in particular.
The Union Commerce Secretary Rahul Khullar has made this clear recently. So that leaves us with defending for ourselves. Industry stalwarts have already predicted that exports will gain pace from next month considering the fact that the markets of US and Europe have started to lighten up considerably.
However the big question is: should we wait for these markets or should we start looking for alternate markets to push our sales? I think it is dangerous to rely on just a handful of nations for our exports - we have learned this the hard way this time around.
Although exporters are now looking at the Asian and African markets where there is still demand for our goods, there are several exporters who are still to wake up to this fact. I have observed that despite slowdown in the traditional US and European markets, exporters are still hooked to these markets and are thus left empty-handed in most cases.
Moreover most exporters made no adjustments whatsoever in their product lines which led to their failure. The situation calls for new strategies in our operations, diversifying our trade basket and exploring newer markets. Those who have made these corrections have been rewarded with good results.
The good news however came from the Finance Minister who recently assured that the stimulus packages introduced in the last fiscal to protect the Indian economy from the impact of the global financial crisis, would continue till the economies of Europe and US gather momentum.
Today's economic situation calls for making one's own path to success. The situation also calls for intelligent planning and research before taking any decision. With a couple of adjustments I think it should not be difficult for us.
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Current economic situation vis-a-vis planning.
Vinay Joshi | Wed Sep 23 18:14:37 2009
Dear Mr.Bikky Khosla,
All the points raised by you were earlier posted by me barring a point or two.
This fiscal defecit already 10% will grow,C.Govt has to initiate steps in accordance with fiscal responsibility management.I had also stated earlier that RBI is in dilema - raise interest rate curbs growth or expand credit for growth/consumption & risk inflation overturn. In this scenario long term sops will harm the exconomy.
However some optimistic sentiments as markets surge,sensex 16 mths high,FII infused $12Bn in last six months after Q4 pull out, advance tax mop up rises by 13.10% in Q2, industrial production index up, ADB ups FY10 & FY11 growth forecasts & its percieved that stronger India heads to G20 summit in Pittsburgh, Thursday, as world second largest growing economy!
Sprinkle of sops is no cure for MSME's who have to re-engineer themselves for sustained expansion & export led industrialisation. MSME's form the backbone.The stage is set,MSME's not to creep.Who had stopped pushing into alternative markets? I had earlier stated, if you want,source from Country 'A' for export into Country 'B'. MSME's myth that China employs cheap labour, its costlier than India.The additional costs of concessions in new FTP is 2.2k Cr. CI to be acquired, do we have CI practice in India? Prior to industry sops, infrastructure spend is vital for eco.growth.US can spiral into bankruptcy sitting on 'debts' may not in immediate future.Mispriced unwinding?!Weak sub-par growth.RGDS.
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