‘Sharp fall in exports arrested’

Anand Sharma, Union minister for commerce and industry, said while the relentless fall in Indian exports has been contained, the government is not stopping at that. It’s devising a strategy to explore new markets to help maintain the export target of $200 billion, Sharma said in an interaction on Friday. Excerpts:

There have been reports about a turnaround in exports in the last few months. Are there any numbers to substantiate this?
There are discernible and positive signs in some of countries including Germany and France. The sharp fall (in trade) has been arrested. Our exports were falling at about 34% (on an annualised basis).

This has now come down to 19%. So, we pulled back about 15 percentage points. To return to pre-recession levels would take time. Exports get adversely impacted when there is a fall in demand particularly from major economies and our key destinations. It is important for us to expand and look beyond the traditional markets for exports for market expansion.

What kind of growth are you able to foresee in the months to come in exports?
I void getting into the realm of speculation and numbers. We expect that there will be a global trade contraction between 9% and 11%. But we will be able to sustain healthy exports.

We do hope that by next year we should be able to take it to $200 billion and thereafter hope to grow at 25% every year to double the trade by 2015. The long-term objective is to double India’s share in the global exports by 2020.

Wouldn’t another package for exporters be helpful?What has been done is adequate. The (foreign trade) policy was announced just a month ago.How do you see the exporters overcoming the current challenges?
The economic crisis is a passing phase. Challenges have to be overcome. We have a vision for the future. We have consciously gone for expansion and diversification to increase our presence in global commerce.

Striking regional economic agreements is a part of this strategy. Exports will remain dependent on the turnaround in the traditional markets and destinations of our exports in addition to the success of our exporters in taking benefit from the new policies and incentives.

Coming to WTO, there is talk of ice being broken? What is the way forward?
I am not saying that we have broken some ice. It is in the interest of the developing countries that the process goes ahead. The negotiations are now underway in Geneva.

What does that mean to India?
We have taken the initiative to re-energise the stalled WTO talks. Because of non-convergence on some issues in July last year, the talks had collapsed. We are grateful to all the countries and stakeholders for giving positive support to the initiative and help reach a consensus.

We are confident of concluding the talks on world trade by 2010. We are confident that a rule-based multilateral trade regime will be put in place to correct the historical imbalances and to ensure that the legitimate aspects are addressed.

There has been a campaign against Indian pharmaceutical companies, the generics makers,  in some markets. How are you handling it?
The world has seen what we have done with anti-retrovirals (ARVs, the treatment for AIDS). The cost has been brought down from $13,000 per person per year to less than $500.

It is a fact that there has been a campaign against Indian generics. It always happens when vested interests, which are less concerned with the need of medicines in poor countries, try to mislead and confuse.

We have taken up this strongly with the European Union. Some of the shipments which were not meant for the EU were also stopped —- they were on their way to Brazil. This has been done in open violation of the WTO norms.

Who do you think is behind this?
Let’s not go further into this. We have taken it up to the highest level to resolve the issue.