Govt sets export growth target at 16%

The government has set an export target of 16 per cent for the current fiscal which would push up India's merchandise exports to $ 73.4 billion at the end of March 2005.

"This will help exports reach a level of $ 150 billion in 2009-10, with focus on manufacturing and employment as announced by Commerce and Industry Minister Kamal Nath," an official release said.

Senior commerce ministry officials told Business Standard that the government has factored high growth rates for gems and jewellery, textiles, leather and its products and petroleum product exports. "We have assumed high growth rates for the gems and jewellery and petroleum products given their performance during 2003-04," an official said.

Similarly, in case of chemicals, the government is banking on a 10 per cent growth during the fiscal, which is in line with the trend for the last two-three years.

Officials said that the textiles ministry has also increased its projection for 2004-05 to double digit growth levels since all export quotas are to be phased out from January next year. For petroleum products, exports are estimated to grow 50 per cent during the current fiscal.

In case of sugar and molasses, marine products and minerals like mica, the government has assumed a lower exports.

"Indian exports had crossed the $ 50 billion mark in 2001-02 and $ 60 billion in 2003-04. Now with the 16 per cent target, exports should cross the $ 70 billion target in 2003-04," the release said. the medium term export strategy till 2007 had projected a 12 per cent annual growth for Indian exporters to corner a 1 per cent share in global exports.

The target has been fixed after commerce secretary Dipak Chatterjee's consultations with export promotion councils, commodity boards and industry chambers. Among the major export councils the Gems and Jewellery EPC and the Council for Leather Exports are projecting growth rates of around 10 per cent.

Others like Engineering Export Promotion Council, which has forecast a 20 per cent growth to $ 12 billion. It is projected a 17.5 per cent growth for iron steel exports "" estimated to reach $ 2.58 billion "" due to the government's recent policy discouraging steel exports to check domestic prices.

In case of product segments like capital goods, the EPC is targeting a growth of 22 per cent, while consumer goods exports are also projected to rise 19-20 per cent to around $ 2.5 billion.