Export Dismal but Sorry, no More sops: Commerce Secretary.

India's export story is starting to lose sheen. Exports have grown just 11% in October while imports had surged over 20%, a development that pushed the trade deficit to record high of USD 20 billion.

So is the exports slowdown here to stay, and will government take more measures to incentivise exports? CNBC-TV18’s Siddharth Zarabi chats with commerce secretary Rahul Khullar for quick answers.

“I have been saying that given the conditions in many parts of both, the developed world and the developing world, there is an aggregate demand problem and it will show up in a contraction for our exports,” Khullar says. In the past six months, the lowest figure for exports in any month is in the range of USD 24 billion while October numbers are less than USD 20 billion. “That means more than 20% fall from the minimum of what we have had in the last six months,” he points out.

According to him, things are likely to pick up a bit. “Post the month-end corrections, even if you get USD 23-24 billion, it is a reasonable amount,” he says. He is positive on India making it through USD 300 billion with a bit of luck. “But if something untoward happens in either the US or in Europe or elsewhere, then the knock-off and contagion effects will hit everybody,” he warns.

Questioned on the scope for further sops for industry, Khullar says a direct no. “We have done what we could,” he says. Last month, the government had announced incentives quite ahead of the curve than wait to get clobbered and then come in. “I think beyond that we made it clear while announcing changes to the foreign trade policy, that no further sops will be given due to fiscal constraints,” he says.

Source : moneycontrol.com