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Infrastructure Will Take India to the Top: Veerappa Moily

  • India has a potential to grow faster than the rest of the world if the country takes up infrastructure development on a war footing, said union minister for corporate affairs M Veerappa Moily.Inaugurating the exporter’s conclave organised by Federation of Indian Export Organisations (FIEO) here on Monday, Moily said: “2012 has been projected to be a difficult year for world trade. World Bank has revised its forecast by pegging growth in world trade at 4.4 per cent while IMF put it at 4 per cent. If India wants to grow faster, roads, ports, airports and railway connectivity should be in place” he said.
  • Patting exporters from Karnataka on their back, Moily said they had made the state one of the most attractive destinations for domestic and foreign investors. Total exports from Karnataka grew from Rs20,144 crore in 2001-02 to Rs1,65,523 crore in 2010-11 at a compounded annual growth rate (CAGR) of 35%. Electronics and computer software exports rose at a CAGR of 37% with total exports reaching Rs105,350.77 crore in 2010-11, Moily said.Information technology sector constituted 53% of Indian exports from the state , establishing state’s leadership in software exports. The state also recorded petroleum and petro product exports of Rs14,620.4 crore, and gems and jewellery exports of Rs19,896.82 crore, he said.
  • FIEO chairman Walter D’Souza said other major exports from state during 2010-12 were iron ore and minerals at Rs967.97 crore, readymade garments at Rs6,865.70 crore, and engineering goods at Rs7324.29 crore. India has the potential to clinch $62 trillion of the global trade, or 4 per cent, by 2020, he said.Indian export business operates on 12 per cent transaction cost while several exporting countries operate on 1 per cent or even less in some commodities, said some exporters. If transaction cost comes down, export volume will increase. Export business works on wafer thin margins but if volumes increase due to lower transaction cost, export activities will get a definite boost, they said.
  • While exporters were enjoying the air-conditioned atmosphere, groups opposing special economic zones and industrialisation held a day-long demo outside the centre.Spokesperson of Karavali Karnataka Janabhivraddi Vedike TR Bhat told DNA: “While any initiative that encourages development and creates jobs is laudable, the government must ensure that corporates keep their social and environmental commitments”.

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