SPEECH BY HER EXCELLENCY THE PRESIDENT OF INDIA, SHRIMATI PRATIBHA DEVISINGH PATIL, ON THE OCCASION OF THE PRESENTATION CEREMONY OF FIEO'S NIRYAT SHREE AND NIRYAT BANDHU AWARDS

Vigyan Bhavan, New Delhi, 16th December 2008

Ladies and Gentlemen,

It gives me immense pleasure to present the "Niryat Shree" and "Niryat Bandhu" Awards instituted by the Federation of Indian Export Organisations for outstanding performance in exports. I am sure that these awards would inspire other entrepreneurs in this important sector of the economy to contribute even more vigorously to the economic development of the country. Besides exporting companies, Public Sector Banks and the Export Promotion Council, which have rendered support services for the development of exports, have been awarded. I congratulate them also.

The Indian economy has come a long way in the last two decades and gained a reputation for its resilience and prospects for growth. It is one of the fast growing economies of the world. However, as we grow, it is important that the benefits of growth spread to all regions of the country and to all sections of society so that inclusive growth heralds the emergence of a resurgent India.

Exports have a very important role to play in the economic growth of our country. The positive contribution that this sector makes to employment is of utmost importance to the vision of equitable growth. Much importance is also attached to this sector as it is a medium to project India in overseas markets as a source of quality products. Exporters, therefore, must remember that their products encase the image of country and disseminate to the world a message about the level of development, productivity, quality of product and professionalism existing in India.

Since ancient times India was renowned for products ranging from spices to cotton. Indian traders have been sending their goods to the West and to the East over the centuries. Today, when we talk about international trade and globalization, the concepts are not new to us. The apprehensions about the impact of liberalization on the growth of the export sector, proved to be incorrect. We have witnessed that this sector can not only survive competition, but can develop robustly which demonstrates the high degree of resilience and skill of those involved in this important sector. I wish to congratulate our entrepreneurs and exporters for displaying dynamism. But, we have a long journey ahead of us.

The global economy is today faced with extraordinary challenges relating to economic slowdown, liquidity crunch and lack of confidence. The crisis which emanated from the leading economies of the world has spread to almost all economies across the world. This turbulent phase in the global economy has had its impact on India too. Declining growth rates coupled with slackening of demand levels will, as per World Bank estimates, result in world trade volumes contracting for the first time since 1982. The Indian export sector grew at almost 24 percent in the period April to October this year, but saw a decline in levels of growth recently. This is a challenge. I am hopeful that as always, FIEO shall work for the cause of the Indian export industry. Governments will play a coordinating role and help to create a conducive political and economic environment. But you are the actual players on the field who will go on to rebuild confidence, inject dynamism into the economy and turn the wheels of growth.

In a globalised world the collective response of countries would need to be coordinated for bringing about an upturn in the growth prospects of the world economy and to address issues of transparency, accountability and regulation of financial markets. India has been a part of these efforts, working with the international community, to restore growth and to reform financial systems. It would also require that the global development agenda is not lost in the current scenario. Making available funds for achieving development goals and for addressing the concerns of the developing countries, including in trade, must receive attention. Better access to existing markets and opening of new markets to developing countries are important in the context of the negotiations of the Doha Development Agenda of the World Trade Organisation.

For sustaining domestic growth, the Government has taken monetary and fiscal measures. Our financial systems are strong and several steps to enhance considerably liquidity in the market have been taken. Measures have also been put in place for export incentives and credit facilities. I believe that our export houses have the necessary competitiveness and diversification to operate in a challenging global environment. I am confident about the prospects of the Indian economy, which continues to be one of the fast growing economies of the world, and also that our export sector will be a part of this growth story. India's total merchandise trade which accounts for nearly 1.5 percent of world trade, will with your efforts, reach the target of 5 percent share in world trade by 2020.

To encourage our exporters, FIEO and other business organizations along with the Government could help them in exploring new markets. In addition, there should be a focus in an appropriate manner on products of high export intensity but which have low penetration in overseas markets. Suggestions from the Export Promotion Councils in this regard could be invited. This interaction is important particularly in these times of global stress.

In conclusion, I once again congratulate all the award winners. I compliment the Commerce Minister and the Textiles Minister for their continuous efforts for the sustained development of the export potential of our economy. I am sure that the export sector will continue to contribute to the balanced economic and social development of our country. We must all work together to take India to newer heights. Working together, with innovation and dynamism, we can realize our collective destiny to be a great nation.

Thank You,

Jai Hind