Industry & Economy
-
Foreign Trade
`Explore trade possibilities with CIS'
K.V. Kurmanath
Hyderabad
,
Aug. 26
THE Union Government has asked industry to shatter the `myth' of CIS and start exploring the enormous business potential out there.
The Government feels that the Commonwealth of Independent States, carved out of the erstwhile Union of Soviet Socialist Republics, is out of India Inc's business plans after the collapse of the former Communist country. Once the Government-to-Government contact is severed, the buyer-seller contact is cut off.
That the exports fell from $2,935 million in 1990-91 (prior to the collapse) to $584.62 million and imports from $1,322 million to $258 million a year later reflects the fallout.
"Lack of direct and regular interaction has been the major problem," Mr P.K. Mahapatra, Director (Foreign Trade - CIS) of Ministry of Commerce and Industry, told a select group of plastic exporters here.Macro-economic instability, modest progress in liberalisation and inadequate banking facilities were some of the other problems that came in the way.
He, however, said that the situation had begun to change for good.
The Focus-CIS initiative, launched by the Union Government last year, helped improve exports by 71.75 per cent. "Exports to Central Asian region grew to $146.96 million in 2003-04 from $85.56 million," he said.
The initiative comprised conducting market surveys, participation in product-specific trade fairs and organising delegation visits.
Stating that the longish trade route had been a major deterrent to look at the CIS market, he said a new corridor was developed via Iran. "This route will be cost effective by 20-30 per cent," Mr Mahapatra said.
More Stories on :
Foreign Trade
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
