Export Slowdown

The government has also been making noises about tapping new markets and emphasising value addition. But these are essentially commercial decisions and it is difficult to see what the government can do about them. Indeed, it shouldn't even try. An important part of the problem is the discretionary mind-set in the commerce ministry, which refuses to change. This was implicit in the earlier 15 by 15 country/product matrix it constructed. The exercise was meaningless. The matrix is apparently going to be phased out now, which is just as well. It must also be hoped that this mindset will not lead to the ministry into asking for export subsidies to offset the minimum alternate tax. That is just the sort of thing which must be avoided. It would be better off, instead, pressing for more power, rail wagons, modern ports, telecom lines and containers. Exporters can be trusted to take care of the rest.