It is heartening to note that there has been a significant decline in the inflation during the last quarter to 6.15% Prices of vegetables have shown a declining trend bringing smiles on the housewives. Coupled with the APMC reforms with removal of fruits and vegetables from the list contemplated by some states, we can assume that the food market will become more competitive and efficient.
On the industry front, though there has been some improvement in the current account deficit mainly on account of reduction in imports, what is the need of the hour is boost to exports to bring more foreign exchange to our economy. Also, more FDI is another imperative to prop up the ailing economy. There have been some relaxations in this direction by the Govt., including improvement in the infrastructure facilities leading to the belief that our economy will become more vibrant and resilient as in the past. Fiscal deficit is expected to meet the budgeted target of 4.8% of the GDP, which is an encouraging sign.
Decline in inflation should not lead to complacency on the part of the policy makers. Immediate attention is to be focused on the infrastructural area, including improvement of roads, power, ports, airport etc., which are very vital for the sustained growth of exports from the country.
From the available reports, it is learnt that the US economy has now reverberated to do well. Since our country's exports are mostly to US, it is reasonably expected that exports will pick up in the coming days. Stabilization of Indian Rupee against US Dollar is another positive. In this encouraging environment, we are sure the colorant industry will be able to reap rich dividends by promoting exports by leaps and bounds in the near future.
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