The Indian government’s policy not to displace small retailers was lauded by all the business circles. The Commerce Minister put an end to all speculations and rightly came out with a decision that luxury brands will not be allowed to pose any threat to small-time retailers.

However if we take Mr. Kamal Nath’s word, his ministry has its hands full. First and foremost, I would say the customs duties should move to the ASEAN levels.

India Inc. too should take advantage of the trade agreements with various nations. Small and medium enterprises (SMEs) should also now get involved in this endeavour to create indigenously-designed luxury products for wealth creation along with India's traditional sectors.

I strongly feel that India too should step up the production of indigenous high-end fashion and lifestyle products. With the right kind of marketing, they can pose a tough competition to the big names in the sector.

Monthly Economic & Commercial Report on Latvia for November 2005 giving latest updates on developments directly affecting India's foreign trade and investment.

Even as the countdown begins for the Union Budget in just about six weeks' time, the one good thing that will warm up the hearts of the Indian industry is a bullish trend in the export sector which grew by 18 percent to $66 billion in April-December of fiscal 2005-06 and is set to achieve the target of $93 billion by March 31.