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Export target may be missed, says FICCI

KOLKATA: The Federation of Indian Chambers of Commerce and Industry (FICCI) fears that exports are under pressure and India would miss the $200 billion export target set for 2008-09.

“With both the U.S. and the EU slowing, export growth is likely to peter out in the coming months. Already in October 2008, exports are said to have declined by 15 per cent on a year-on-year basis,” the industry body said.

It said that there was a clear and discernible slowdown in growth in the current year and gross domestic product (GDP) growth is expected to be of the order of 7-7.5 per cent over the next two years against the annual average growth of 8.8 per cent clocked during the last five years. Capital inflows into the country were slowing down too.

With both internal and external sources of finance drying up, several companies were re-assessing their investment plans, the chamber said.

“The members of corporate India were in the midst of a challenging situation.” It felt that several urgent measures relating to monetary policy, financial sector, and fiscal policy needed to be taken to tackle the situation, which needs ‘big and bold moves”.

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