India Will Exceed 9% Growth

India is likely to exceed a gross domestic product (GDP) growth rate of nine per cent by end of fiscal 2007-08, Commerce and Industry Minister Kamal Nath said on Dec 18. India''s growth rate is expected to exceed nine per cent despite rising oil prices, appreciation of the rupee (against the dollar), and high interest rates, Nath said in New Delhi.

On the issue of the rising rupee adversely affecting exports, Nath said: We are looking at various mechanisms, such as reimbursing state levies and taxes (to exporters). We are also looking at other kinds of sops. Due to rising rupee, which has surged by almost 15 per cent in the last 12 months, exports, especially of textiles, leather, handicrafts and marine products, are facing job losses. There have been 120,000 job losses (both direct and indirect), the minister said.

Textile exports have come down by about 22 per cent, handicrafts exports have declined 66 per cent, marine products 20 per cent and leather nine percent, according to ministry officials. Nath, who earlier during the day met Prime Minister Manmohan Singh at the meeting of the Council on Trade and Industry, raised the issues facing exporters.

The minister also gave a status report on the inflow of foreign capital into the country.

Inflows are continuing with great momentum. FDI (foreign direct investment) equity inflows during the fiscal 2007-08, as of September 2007, were $7.2 billion, which is a growth of 65 per cent over the same period previous year. Nath also informed the media persons that the 170-member World Intellectual Property Organisation (WIPO) has endorsed India''s recognition as an International Searching Authority (ISA) and an International Preliminary Examining Authority (IPA).