The commerce ministry in a note has suggested inputs for the President’s speech when he addresses a joint session of Parliament likely to be held on June 6.
While a surge in exports and reducing the dependence on imports would be crucial to bridge the curnt account deficit, the Foreign Trade Policy 2014-19 to be announced soon should build up on India’s strengths, focus on export of manufacturing and value added products and enhancing the competitiveness in farm produce.
“A stable tax regime and stable foreign exchange rate will be necessary to support an aggressive export strategy. It is also proposed to establish an Export Promotion Mission to bring all stakeholders under one umbrella. States will be made partners in the country’s export promotion efforts,” according to the note.
Outgoing finance minister P Chidambaram had earlier said that current account deficit (CAD) was brought down significantly to $32 billion in 2013-14 against $88 billion during 2012-13 and fiscal deficit contained within the target during last fiscal.
In FY13, CAD was at 4.7 per cent of GDP and in FY14, it will be only 1.7 per cent, Chidambaram had said.