NEW commerce and industry minister Anand Sharma said on Friday that incentives given to businesses to help sustain export and trade would have to remain in place. Sharma, in an interview with Reuters, said his office was reviewing its trade policies. “We are looking at incentives, which we can give, fresh incentives, or the stimulus which we have given earlier, primarily relating to duty drawbacks, some duty exemptions and also credit rollovers. That will have to continue,” Sharma said. Next month, Finance Minister Pranab Mukherjee will unveil economic stimulus measures in an effort to boost growth and counteract the effects of the global economic downturn. “I will have to wait for the 6th of July, but we want easy credit to be made available, dedicated credit to exporters. We hope they will be there,” Sharma said. Sharma was upbeat on India's domestic economy, highlighting strong domestic demand as one reason it was still growing and “moving again closer toward 7 percent (GDP) growth. “In the 2009 fiscal year ended March 31, India's economy grew 6.7 percent, its weakest rate in six years and well below rates of about 9 percent the previous three years, but still faster than predicted by economists in a Reuter's poll. Exports are expected to drop to $164 billion in fiscal 2010 from $168.7 billion in the prior year. Unlike most Asian economies, which heavily rely on exports to sustain economic growth, India is driven by domestic demand. It still experienced a sharp slowdown in late 2008 as job cuts at exporters and outsourcing firms as well as the drying up of investment inflow soured consumer and business sentiment. Exports account for only about 15 percent of India's GDP, less than half the levels in China and Japan.
