Import-Export scene and strengthening rupee - India’s exports are growing in dollar terms (19%) while showing a marginal 4.3% in rupee terms. This implies that they are trying to maintain volume growth at the expense of profit margins, which have been hit due to strengthening rupee.

The solution suggested an ET editorial, to improve the competitiveness of Indian exports is – allow large foreign retailers to set up operations in the country. The logic is that the huge outsourcing taken up by them from the local market for their global operations is well documented in many countries – notably China. This will bring in know-how and investments to modernize the logistic chain.

But will the government bite? I doubt it. The picture of Reliance rolling back some of its retail operations in some parts of the country and totally in UP is too recent for comfort for any government. If India becomes a global outsourcing hub for vegetables and other sundry daily needs, imagine the consequences on prices? Can any political party accept such a scenario? I think foreign retail will take far longer to enter the country through FDI.