The Government should give a boost to exports to safeguard from external challenges and sustain growth.

The Economic Outlook Survey 2018 report by the Federation of Indian Chamber of Commerce and Industry states that though the government is taking short-term measures to address the challenges of widening current account deficit and rupee depreciation, exports need to be enhanced for the growth in the long run as it can combat external challenges.

cThe median growth forecast for agriculture and allied activities has been put at 3.9 per cent for 2018-19 and industry and services sector are expected to grow by 6.8 per cent and 8.2 per cent, respectively during 2018-19.

The report, based on a survey from economists, stated that the current situation is mainly a result of global spillover and is not so much due to domestic factors. “Global developments such as elevated global crude/commodity prices and significant sell-offs in emerging market have mainly been responsible for this scenario,” the report added.

To offset the impact of external challenge, exports need a boost, the report said. The report suggests that it could be improved by enhancing the efficiency of special economic zones and addressing domestic bottlenecks to safeguard from external challenges.

This could be done by giving each State a mandatory target of export growth in products and services. Centre and States can identify the potential products for exports and improve the overall infrastructure requirement. It should support States in creating the right ecosystem for promoting the identified industries. This will go a long way in creating a competitive environment within the country, the report added.

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