With the growth in industrial production moving northwards and the contraction in exports declining, the “dark clouds” over the Indian economy were disappearing, commerce minister Anand Sharma said on Sunday. Indian exports contracted 14% in September, the least in the first six months of the current financial year, while the Index of Industrial Production grew at a double digit rate of 10.4%, the most in two years.

Commenting on the current state of the Indian trade and investment scenario at the India Economic Summit, Sharma said, “The dark clouds over the economy are parting, and we can see some blue sky”.

He, however, added a word of caution on the “turn around” seen in the economy. “It’s only in the months to come that one can comment whether or not this turnaround is adequate. Especially, the last quarter of 2009-10 and the first quarter of the current financial year would be crucial for determination.”

Mentioning that there is no proposal to have a re-look at the sectoral FDI caps, Sharma said rationalisation of the investment policies will be carried out. “We are also mindful that when we look at FDI, there has to be a uniformity and rationalisation across the board, throughout the country. All state industrial ministers would meet on November 17. We want all the states to take on board the need of transparency and rationalisation, simplification and predictability of approvals.

Sharma also vouched for increased role of India in United Nations, International Monetary Fund and the World Bank, as the country is increasing its engagement with the world economy.