160 bn export target may be met

The threat of the rising rupee against the dollar and its impact on exports notwithstanding, the government today exuded confidence that the 160-billion export target set for the current fiscal will be met.

The threat of the rising rupee against the dollar and its impact on exports notwithstanding, the government today exuded confidence that the 160-billion export target set for the current fiscal will be met. Commerce Ministry believes that the Indian currency which has been rising against the dollar since August last year, is beginning to weaken and the impact on exports which had begun to show will be negated soon.

8220;We are confident of meeting the export target set for 2007-08. If the rupee remains at 40-41 to a dollar then there is no need to revise the export target,8221; said commerce secretary G K Pillai. 8220;We are in constant touch with various export promotion councils and are working out on ways to enhance exports.8221;

The government had set an export target of 160 billion for 2007-08, against 125 billion achieved in the previous fiscal when commerce minister Kamal Nath announced the foreign trade policy earlier this year. However, with the 11 per cent appreciation of the rupee against the dollar, the target had started looking stretched raising hopes of a possible revision to 140 billion.

But according to the ministry estimates, the long term story remains buoyant. Keeping the current growth rate in mind, the Commerce Ministry has earmarked exports worth 300 billion by 2012-13 and imports of 400 billion on the back of increased emphasis on manufacturing. 8220;We are preparing a blueprint and looking at exports of 300 billion by 2013, given the growth being witnessed in the manufacturing sector,8221; Pillai said.

India8217;s negotiations on free trade agreements may also play a big role in enhancing exports. The India-Asean Free Trade agreement which is expected to give a big fillip to trade in the region, is likely to be signed at the Asean Summit in November this year.

8220;The free trade agreements are important vehicles of economic growth. Efforts are on to 8216;tie up8217; all modalities on FTA by the end of next month. An announcement on the India-Asean FTA is expected to be made by the Prime Ministers at the Asean Summit to be held in Singapore in November,8221; Pillai added.

It is estimated that if the agreement is signed within the stipulated time frame, India8217;s export to Asean could reach 22 billion by 2012. In 2005, two-way trade between India and Asean was at 23 billion, with India8217;s export share at 8 billion.

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Asean8217;s share in the country8217;s foreign trade grew marginally to 9 per cent in 2002 from 6 per cent in 1991, but India8217;s share in Asean8217;s trade was a mere one per cent. Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam make up the 10-nation Asean.