Recommending that India should diversify its export basket,the Economic Survey has stated that the country should also rectify the ballooning bilateral trade deficit with nations like China and Switzerland.
While India has made major strides in its diversification of export markets,a lot needs to be done to not only diversify the export basket but also have a perceptible share in the top items of world trade, the survey,tabled in Parliament by Finance Minister Pranab Mukherjee today,said.
According to the survey,in the top 100 items imported across the globe,India had only 15 items with a share of 2 per cent in 2010 comprising small items like taps,cocks and valves. This clearly emphasises the need for greater export basket diversification by India,it argued.
Further,the country should also work on improving trade facilitation and engage in meaningful and result-oriented free trade agreements to cushion the impact of the deepening euro zone crisis.
Exports are likely to grow slowly in the coming months… the challenges on trade front are many… if the global situation worsens,the pressure for stimulus measures could again resurface and protectionist measures from trading partners could increase, the survey cautioned.
During the April-January period,Indias exports grew at 23.5 per cent to $242.8 billion. The trade deficit during the period stood at $148.7 billion as against $105.9 billion in the same period last fiscal.
As regard ease in trading across borders,the survey said that India needs to make more efforts to ease doing business in the country. Time to export is 16 days for India,21 for China,and 5 for Denmark. Cost to export is $1,095 per container for India compared to $500 in China and $450 in Malaysia. Number of import documents that need clearances are 9 in India,5 in China and 2 in France, the survey said.