Exports need to be increased : Mukherjee
Expressing concern over high current account deficit, President Pranab Mukherjee said exports need to be increased to bring down the deficit to...
"A matter of concern is the CAD, which at 5.4 per cent of GDP during the period April to December, 2012, is very high. Though we have managed this deficit through capital flows, we have to increase our exports to bring it to a sustainable level," Mukherjee said at a function of IIFT on Thursday.
The CAD occurs when a country's total imports of goods, services and transfers are more than total exports of goods, services and transfers. "The compound average growth rate of our exports during 1991-92 to 2000-01 was 10.7 per cent. This has increased to 19.1 per cent during the period 2001-02 to 2012-13," the President said.
India's exports have increased from USD 17.9 billion in 1991-92 to USD 300.6 billion in 2012-13. He said that a strong revival of the global economy is expected in 2014. "At a time when global demand is yet to firm up, there is a need to strengthen our export industry," he added.
However, Mukherjee said that there is a need to ensure the availability of enough food in the country."While we must be proud of our performance in commodity exports, there is a need to monitor and exercise caution. We must ensure the availability of enough food in the country at all times. Every citizen should have access to affordable food," he said.
The country is the world's largest rice exporter and second largest wheat exporter. On India's economic growth, he expressed confidence that India will bounce back to the high growth trajectory.