India's exports slowing to $140 bn

NEW DELHI: Exports are likely to be around $140 billion during the year to end-March 2008, lower than the annual target of $160 billion, as a strong rupee hits firms, a senior trade ministry official said on Monday. "I have always said it will be only possible to do $140 billion," Commerce Secretary G.K. Pillai said on the sidelines of the World Economic Forum summit in New Delhi.

"Growth will be in some sectors, but the impact of the rupee's appreciation is being felt in sectors with high domestic content," Pillai added. In April, India set an annual export target of $160 billion but as the rupee rose to near-decade highs below 40 to a dollar exporters have seen margins squeezed, leading to job losses, especially in the textile, leather, and handicraft sectors.

Pillai said 30,000 regular employees had been made redundant due to the increasing value of the local unit, while 100,000 contract labourers had also lost their jobs this year. "It is really hitting the (export) sector," he said, adding the trade ministry would seek cabinet approval for more relief measures to help exporters.