The government’s export promotion measures, implementation of minimum standards for imports, and continued healthy inflow of remittances by non-resident Indians will help control the country’s rising current account deficit (CAD), the commerce and industry ministry has said.
Terming the present petroleum situation as a ‘temporary aberration’, commerce secretary Anup Wadhawan on Tuesday said the government can increase tariffs within the bound rates to control imports.
Bound rates are the rates that countries commit themselves to at the World Trade Organisation (WTO). They cannot be exceeded. Emphasising that the government will exercise all options available optimally, Wadhawan said developing countries’ infant industries need protection and India would use the options to protect consumers from substandard products.
India’s CAD jumped to 2.4% of GDP in the first quarter of 2018-19 against 1.9% in FY18. A sharp depreciation in the rupee and a surge in the price of crude oil has led to the deterioration in CAD. The finance ministry recently announced a slew of measures to control CAD and said it would also consider curbs on non-essential imports.
Wadhawan said export incentives will aid the country achieve record export numbers this year even though there are two challenges of petrol prices and rising protectionism. “We are engaging with line ministries on a weekly basis. We are certain to maintain 16% growth in exports this year,” he said. India’s exports rose 19.21% to $27.84 billion in August.
The commerce ministry has told exporters that proper mechanisms will be put in place to ensure the trade with Iran does not get disturbed. “We are certainly urging the departments concerned to put in place an arrangement, as and when required, which ensure that there is no disruption in trade,” Wadhawan said.
The US has told India and other countries to cut oil imports from the Gulf nation to “zero” by November 4, or face sanctions. India is yet to take a call on complying with the US sanctions on Iran.
Source :- Economictimes.indiatimes.com