The recent developments in the Indian economic growth in general and the export-import front in particular have caught the government off-guard. Despite some damage-control measures, it leaves scope for quicker processes that could have given the exim community some respite.

The entitlement on exports under the Target Plus scheme in this financial year ending 31 March, that is year 2005-2006 will now be cut to a uniform five percent on the growth. The decision has hit the exporters hard and many had to bear great losses, owing to the fact that they had made business decisions taking into account the original rates. The losses are going to be significant for a large number of exporters and this may impact growth of exports for the current year.

Also take the instance of the time when the government recently banned export of certain items in a bid to curb a recent surge in prices of essential goods in the country. The decision without doubt was necessary to bring down the sharp rise in prices of these items and a growing resentment among the masses.

Having said that, I would add that the manner in which the government handled the whole situation beats all rationale. The hasty decision has jeopardised several exporters whose goods are either in transit to the respective ports or lying in the warehouses of clearing agents. This I will say is definitely unfair.

The best the government could have done is to give some time to traders to clear all pending shipments – say a week or two. Moreover, the government now needs to hit the gas in mobilizing its crisis management which can not only monitor the ongoing trends but also give advance warning and time-frame before implementation

Monthly Economic & Commercial Report on Mongolia for quarter ending June 2006 giving latest updates on developments directly affecting India's foreign trade and investment.

India's export story is getting shinier by the day. In keeping with the past three years' growth pattern, India's merchandise exports grew by a record 30 percent in first two months of current fiscal.