Rupee-impacted exports may miss target of $160 bn

NEW DELHI: India's exports may fall $15-20 billion short of the FY'08 target, as a costlier rupee has had a pounding impact on some sectors, including textile.

"If the current rate of growth continues, the exports would be in the range of $140-145 billionfor the current year," Commerce Secretary G K Pillai said here today.

He said certain sectors like textile are facing problems because of the sharp appreciation in rupee value. The Indian currency has appreciated 9.7 per cent against the US dollar, the main invoicing currency for trade, between April 3 and November 20 this year.

The country's exports touched 98 billion dollars for the April-November eight-month period showing a cumulative growth of over 22 per cent.

"While there is an overall growth in exports, a sector-wise analysis would show that employment-oriented segments like textile, pharma, leather and handicrafts have registered a decline," Federation of Indian Export Organisations President Ganesh Gupta had said.

He said the respectable figure of 26.82 per cent growth in November 2007 could be on account of sectors with high import content like petroleum performing well.

The government had extended Rs 5,200 crore worth relief package to the rupee-hit exporters by way of higher tax neutralisations through various schemes.