Merchandise exports may not meet $160 b target

New Delhi, Jan. 23; The Government expects merchandise exports for the current fiscal to be in the $150-$155 billion range, lower than the targeted $160 billion for the year.

The US slowdown and rupee appreciation against the dollar are seen as important reasons for the likely shortfall in export target.

“Exports of $150 billion look a certainty. If there is a surge it may even go near the target. In next year, merchandise exports of $200 billion looks feasible”, Mr G.K. Pillai, Commerce Secretary, told reporters on sidelines of CII meeting here.

Till end-November this fiscal, the country’s merchandise exports stood at $98.38 billion.

The Commerce Secretary also indicated at the meeting that the forthcoming annual supplement to the foreign trade policy would do away with a number of export incentive schemes that have marginal utility, besides simplifying procedures and encouraging self-certification by exporters.

“We will try to go in for a lighter policy with simplified procedures,” he said.

In the next 10 days, the Commerce Ministry plans to send first draft of the proposed annual supplement to the revenue department in the Finance Ministry for its perusal and comments.

Meanwhile, Mr Pillai has asked industry to submit their inputs to the Krishnamurthy Committee soon, which has been set up by the Prime Minister, Dr Manmohan Singh, to go into the problems faced by certain export-oriented manufacturing sectors such as textiles, leather and handicrafts.

Mr V. Krishnamurthy is likely to submit the committee report to the Prime Minister by end January.

On free trade agreement (FTA) with Asean, Mr Pillai said that negotiations on the trade pact are likely to be completed by March, and the agreement would be signed subsequently.

“The FTA with Asean will most likely come into force from January 1, 2009,” he added.

He said that negotiations for similar pacts are on with the European Union (EU), Japan and Korea.