Responding to the worldwide demand for smaller, fuel-efficient cars Motor Majors the world over (Suzuki, Hyundai, Nissan and others) are making India a hub for overseas sales of these ‘tiny-titans’. Helped by cheap labour and input costs, India this year has actually overtaken China in auto exports; and is well on its way to challenging Thailand and South Korea as an alternative production centre in Asia. Talk about legendary David and Goliath!
In other segments also, the export story is picking up. The diamond industry has bounced back, reemploying its retrenched employees. 50,000 additional job opportunities are expected in this industry.
However, sectors like textiles and IT/ITES continue to be affected due to slackness in demand from developed economies, still reeling under the downturn. To mitigate such hardships, the Indian Government has pledged support /incentives e.g. extension of Adjustment Assistance Scheme to provide enhanced Export Credit and Guarantee Corporation (ECGC) cover at 95% to badly hit sectors up to March 2010; enhancement of allocation for Market Development Assistance Scheme by 148% over the previous year’s Budget.
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