India aims at USD 500 bn export by FY 2014

New Delhi, May 3 (PTI) Buoyed by a surge in exports in
2010-11, the government Tuesday set a target of more than
doubling India's annual exports to USD 500 billion by 2013-14,
despite global events posing challenges in the current year.
"We must aim for more than a doubling of exports in
three years to USD 500 billion. This is achievable, with a
determined effort. More importantly, we cannot afford any less
than this," according to a strategy paper released by Indian
Commerce and Industry Minister Anand Sharma here in the Indian
capital.
For achieving the USD 500-billion mark, the country's
exports should grow annually by 26.7 per cent.
The export drive would be led by sectors like
engineering, gems and jewellery, chemicals and textiles.
As against the target USD 200 billion, the merchandise
shipments aggregated USD 246 billion in 2010-11 despite
problems in some European markets.
However, Indian Commerce Secretary Rahul Khullar
cautioned that 2011 is likely to be a "very" difficult year
for exporters.
"It is going to be damn hard doing 20 per cent
(exports growth rate in this fiscal) even this year because
Japan is in trouble, Europe is in trouble and the US is in
trouble," Khullar said, adding, "if you get USD 500 billion in
three years, it will be a really huge achievement".
India's exports in this fiscal is likely to be in the
range of USD 260 billion to USD 275 billion, sources said.
RBI in the monetary policy said that sovereign debt
problem in the Euro area, high commodity prices, especially
oil prices and accentuation of inflationary pressure in
emerging market economies could impact Indian economy.
"Should the global recovery slacken...it will impact
our economy through trade, finance and confidence channels,"
Reserve Bank of India (RBI) Governor D Subbarao said.
The final strategy paper (2011-12 to 2013-14) further
said increased imports are unavoidable for feeding an economy
which aspires to grow by 9-10 per cent.
Sharma said the strategy hinges on aggressive
marketing of 'Brand India' and reducing transaction cost to
make exports more competitive.
'The Strategy for Doubling Exports in Next Three
Years' was released after extensive discussions on its draft
paper released in March. The draft paper was aimed at
increasing the exports to at least USD 450 billion.
"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 Balance of Trade and
Current Account Deficit remain within manageable limits," the
paper said.
Khullar said in the next two-three months, the ideas
in the paper have to be converted into "quantifiable schemes
or quantifiable numbers in terms of money".