Export figures, $92 bn target look good: Nath

Last year, India’s combined exim figures were at $185 billion, which is likely to touch $250 billion this year, he said. The July figures are an indication of the possibility of such an export boom, Nath added.

Exports in July 2005 grew a record 27 per cent in dollar terms compared to July 2004. ‘‘It is clear the rains will affect export and import, but we hope to make this up. The exact impact has not been estimated yet,’’ Nath said.

He said though the trade deficit had widened over the April-July quarter, the bulk of imports were of raw materials and capital goods that will actually fuel economic growth.

‘‘A wider trade deficit per se is not a problem. While there is a gap in exports and imports, India’s forex position is in a very good shape,’’ Nath said.

Ministry of commerce’s quick estimates show iron-ore, petroleum products, marine products, plastics and linoleum, rice, gems and jewellery, engineering goods, basic chemicals and ready-made garments did well in July, taking exports in April-July 2005-06 to $28.1 billion, 21.4 per cent higher than April-July 2004-05, when the figure stood at $23.1 billion.

In order to push exports further, the commerce minstry has decided to do away with a Rs 100 crore cess on exports through the cess on APEDA, MPEDA, coffee, spices and tobacco, as part of changes proposed in the Cess Law in Parliament on Tuesday.

‘‘Doing away with the cess is a measure to make exports more competitive. We cannot subsidise exports like the developed countries, but at least let us not tax them. The proceeds of the cess were going to the consolidated fund, which amounts to taxing them,’’ Nath said.

He added the focus of the government remains on promoting employment and not generating dollars by promoting exports.

Around 10-12 lakh jobs were generated in 2004-05 due to increasing merchandise exports, with more expected this year.