Sky's the limit: Export target set at $200 bn
Notwithstanding IMF warning that emerging economies are not immune from slowdown in the US and other developed markets. War on Inflation
By TNN |
NEW DELHI: Notwithstanding International Monetary Fund���s (IMF) warning that emerging economies are not immune from slowdown in the US and other developed markets, commerce minister Kamal Nath has set an ambitious target of $200 billion of exports during 2008-09, up nearly 25% over the previous year.
India���s exports stood at a little over $ 63 billion in 2004 and more than doubled in 2007-08 registering an average cumulative annual growth rate (CAGR) of 23%.
���We aim at achieving a 5% market share of the world trade by 2020. This means we would have to ensure an average annual growth rate of 12% over the next 12 years. For the current year we have set a target of $ 200 billion for exports,��� the union commerce minister Kamal Nath said while announcing the foreign trade policy for 2009.
India���s exports stood at a little over $ 63 billion in 2004 and more than doubled in 2007-08 registering an average cumulative annual growth rate (CAGR) of 23%.
���We aim at achieving a 5% market share of the world trade by 2020. This means we would have to ensure an average annual growth rate of 12% over the next 12 years. For the current year we have set a target of $ 200 billion for exports,��� the union commerce minister Kamal Nath said while announcing the foreign trade policy for 2009.
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With the merchandise trade, export and import, of the country currently valued at $ 400 billion, it accounts for about 1.5% of the world trade.
The government also took many initiatives to boost foreign trade and address the concerns of exporters in the backdrop of rupee appreciation. Among many initiatives taken by the government to promote export include additional duty-free credit of 2.5% under the Vishesh Krishi Gram Udyog Yojana and inclusion of IT and ITeS under the Industrial Park Scheme.
Toys and sports goods industry would also receive an additional credit of 5% over and above the credit available under Focus Product Scheme (FPS). ���Though the government provided some incentives, it took away some from cement and steel exporters,��� ICRIER director Rajiv Kumar said. With the world heading to a possible slowdown, economists don���t paint a rosy picture of India���s foreign trade.
���The export target set by the government for the current fiscal though achievable is very challenging, especially in the wake of global slowdown and rupee appreciation,��� said Nagesh Kumar, director-general, Research and Information System for Developing Countries.
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