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Updated: June 2, 2012 00:22 IST

'$500 b export target looks difficult to hit'

Special Correspondent
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Union Minister for Commerce, Industry and Textiles, Anand Sharma
interacting with industry leaders at the Board of Trade meeting
in New Delhi on Friday. Photo: Shiv Kumar Pushpakar
Union Minister for Commerce, Industry and Textiles, Anand Sharma interacting with industry leaders at the Board of Trade meeting in New Delhi on Friday. Photo: Shiv Kumar Pushpakar

With the economic growth continuing its downward slide and the global situation remaining grim, Commerce and Industry Minister Anand Sharma, on Friday, said given the present circumstances it would be difficult to achieve the $500 billion export target set for 2013-14.

This assessment by Mr. Sharma comes soon after exports registered a meagre 3.2 per cent year-on-year rise to $24.4 billion in April 2012. The continued slowdown and worrying export situation has sent the government into the consultation mode with sops likely to be announced for labour-intensive sector in the next few days.

Despite heavy odds facing the economy, he was hopeful that exports would be able to register a 20 per cent growth. “It is a question of supporting labour-intensive sectors. We have to take a holistic view to ensure that we should remain competitive globally. It is important for India to have a sustained thrust on exports,” he said.

The sharp deceleration in import growth to 3.8 per cent to $37.9 billion resulted in trade deficit narrowing to $13.2 billion, the lowest in the last seven months. Reduction in trade gap would at least lessen worries arising out of sharp decline in rupee against the U.S. dollar.

The Foreign Trade Policy is scheduled to be announced on June 5.

Finance Secretary R. S. Gujral asserted that the depreciation of the Indian rupee would ultimately help exporters in the long-run. “The depreciation of rupee prima facie would help exporters in terms of higher realisation in terms of rupee. Overall, in the long-term, it would help the exporters,” he said after the meeting of Board of Trade (BoT) chaired by Mr. Sharma.

At the same time, he said the weakening rupee was hurting importers badly. The rupee was trading at 55.92 against the U.S. dollar at the inter-bank foreign exchange market.

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For development of india to international even 25 percent of the quality and standard of life enjoyed by the average person in europe, hard currency investment in huge outlay is needed in infrastructure, agriculture and supply chain. This essentially means either the rich billionaires and millionaires of India (especially the NRIs) loosen their wallets. That essentially means the goverment poliecies must be in favour of FDI in infrastructure, agriculture, retail and supply chain. Herein lies the dilemma. For FDI to become reality, Quality of Life, New Skills Training and Income Security of a significantly large number of small traders and marginal farmers including cultivaters must be assured. Unless our plan outlays reaches 100% of the intended beneficiary that assurance will be empty. But unless this happens FDI will not be allowed in all desired areas. So unless government fixes this heavy systemic leak of funds there is no hope India will be on par with developed nations.

from:  r n iyngarnda
Posted on: Jun 5, 2012 at 08:40 IST

Domestic home market: when india is not developed even 10% compared to Europe -USA- Japan,there is so much to do in India in domestic local market. Develop cities, mega city s- grassroots level- infrastructure - schools -hospitals - etc
while doing so why we cant tap all the 240 nations in the world . Large -medium and small. In every sphere or sector that the merit of the nation enjoys and set up achievable min target and make it happen. Work with synergy and consensus.
India has so much to offer to the world - realize and deploy qualified god people to work on it.

from:  Thomas
Posted on: Jun 3, 2012 at 00:33 IST
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