Goods export target revised to $125 billion

The government today set a revised merchandise export target of $125 billion for the current financial year, against $120 billion set earlier this year.

The revised target is 21 per cent higher than the actual exports of $102.7 billion achieved last year and 36 per cent higher than the $92 billion target set for 2005-06.

The export target has been revised upwards, even though a note prepared for the meeting pointed out that the nominal 17 per cent growth in world merchandise trade seen during the last three years may not be sustained in the coming months.

"Though historically this is a significant rate of growth of world trade, it may not be sustained in the coming months in view of the expected deceleration in world GDP growth, consistently high and rising oil prices, firming up of interest rates and increasing global trade imbalances," it said, adding that Indian exporters would have to find new markets with stable and higher growth potential that was sustainable.

The note also pointed out that most of the labour intensive sectors like plantations, agriculture, marine products, leather, gems and jewellery, textiles and handicraft recorded a growth rate that was far below the average growth of exports.

Interacting with export promotion councils and commodity boards to review the export target and export performance, Commerce and Industry Minister Kamal Nath also asked each council to undertake a study of its exports vis-a-vis China.

The minister said the study, to be completed within two months, should examine each the councils' exports destination wise and product wise.

The minister said the exercise would help the councils identify their strengths and weaknesses and help the government formulate policies to boost their exports.

Comparison with China is significant since India despite being the world's fourth largest economy in terms of purchasing power parity has a share of just 0.9 per cent in world merchandise trade.

Also, despite the high growth of exports in the last four years, India could improve its position among world exporters by merely one notch to 29 in 2005 from 30 in 2004.

Speaking on the occasion, Federation of Indian Export Organisation President O P Garg said the government should urgently constitute the task force announced by Prime Minister Manmohan Singh last year to resolve inter-ministerial issues.