Export growth has been shrinking with the November figures suggesting a declining trend again but this time the government is working on a second stimulus package that promises to be packed with drastic measures to bring exports back on track. Commerce and Industry Minister Kamal Nath on December 11 said the government is ready with a second stimulus package to help revive economic growth.
The commerce minister is left with little option given the present state of exports which is going gradually downward. The export growth rate has turned negative 17.59 per cent for the period of April-November 2008 over the same period last year. There has been a slowdown in some of the sectors because of the slump in the global economy both in credit terms and demand. The ability of consumers to buy and the lack of financing available is creating problems, he said after a function organised by Spanish Institute of Foreign Trade and industry chamber Ficci in New Delhi.
The government also said that the second stimulus package would primarily focus on creating employment and drastic measures at bringing back liquidity into the exporters hands that will give more flexibility to exporters to invest their capital in required areas like new market access. In fact, with positive growth sectors such as petroleum, engineering, gems and jewellery also slipping into the red, the government now really needs to come up with a package that will do more than just clearing out the bad debts for exporters and will focus on solving the credit crisis.
The commerce minister is left with little option given the present state of exports which is going gradually downward. The export growth rate has turned negative 17.59 per cent for the period of April-November 2008 over the same period last year. There has been a slowdown in some of the sectors because of the slump in the global economy both in credit terms and demand. The ability of consumers to buy and the lack of financing available is creating problems, he said after a function organised by Spanish Institute of Foreign Trade and industry chamber Ficci in New Delhi.
The government also said that the second stimulus package would primarily focus on creating employment and drastic measures at bringing back liquidity into the exporters hands that will give more flexibility to exporters to invest their capital in required areas like new market access. In fact, with positive growth sectors such as petroleum, engineering, gems and jewellery also slipping into the red, the government now really needs to come up with a package that will do more than just clearing out the bad debts for exporters and will focus on solving the credit crisis.
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