India sets $450 bn export target by 2014

In the current fiscal,India’s exports is expected to touch $225 billion,he said. India’s exports in the 2009-10 fiscal was $178.6 billion,a decline of 3.6 per cent over the previous fiscal.

The draft paper said though the proportion of merchandise trade to GDP will increase to nearly 48 per cent in 2013-14 from the present 35 per cent,the trade deficit “is projected to increase from 7.2 per cent of GDP in 2010-11 to nearly 13 per cent of GDP in 2013-14…We have therefore no option but to focus on higher export growth and devise a strategy for rapidly increasing merchandise exports to ensure that the BoT and current account deficit remain within manageable limits”.

According to the strategy draft,exports would be required to grow by 26 per cent per annum to achieve the target. Even with the achievement of the export target in 2014,trade deficit will remain over 9 per cent of GDP,“same as present,which may be regarded as just about manageable”.

The country will also need to upgrade technology and indulge actively in research and development activities,especially in pharmaceutical,electronics and automobile sector. Apart from that,it is very important to build ‘Brand India’,“which would need strengthening of quality enforcement regime through BIS,Export Inspection Council and our export promotion councils will be tasked with building a brand strategy which will resonate in the global markets,” Sharma said.

The draft said that a market diversification strategy is important because demand in the traditional markets,including developed world,is likely to be sluggish because of slowing output expansion in these economies.

So,India needs to focus on markets in Asia,including Asean,Africa and Latin America,the draft said.