Time for policy changes

It was a great show of confidence by the Indian delegation led by Finance Minister P Chidambaram  at  the Davos Economic Summit. And as the cloud of gloom over signs of US  economic slowdown loomed large throughout the summit, India and other Asian nations, particularly China, lifted the mood to some extent.

Yes, without doubt India's exports will be affected marginally if there is a global recession, but India is not linked to  the global economic situation due to high dependence on  the domestic market. Our domestic market is huge enough to cushion this impact. Moreover if the export community looks for alternate markets within the region, it can  help tide over this downturn without much sweat.

Above that the Indian financial system including banking, insurance, pensions and assets management companies are mature enough to bear these shocks.

Having said that however,  both the Indian government and exporters alike need to make certain adjustments to tide over this impending crisis. Chidambaram himself has said, 'Long-term effects of the crisis spreading from one market to the other have to be carefully measured and responded  to appropriately'.

It's high time the global political leadership, particularly US and EU,  found ways to break  the ice and concluded  a trade deal this year.

So now is the time to make the much-needed corrections in the policies adopted by the government. Unless these amendments are incorporated, exporters stand to lose a lot in the coming days. So who will take this first step?

Monthly Economic & Commercial Report on Egypt for December 2007 giving latest updates on developments directly affecting India's foreign trade and investment. Read More...

All Govt. bodies and forums give a lip service to SMEs and praise their struggle and performance. If SMEs are the life of Indian Industry, Which forum (CII, FICCI, ..) offers them a platform to market their products and services to get business, without charging them a high unaffordable amount? This is another politics using the poor companies....

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