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TOPIC : Govt not revising export target
The government has recently said that it is not revising the USD 160 billion export target set for 2007-08 despite the appreciating rupee impacting exporters` margins, but will review the performance in November.
"The export target will not be revised but we will review the export performance in November," Commerce and Industry Minister Kamal Nath said.
The government had fixed an export target of USD 160 billion for 2007-08 in April this year against USD 125 billion achieved in the previous year.
With the rupee appreciating more than 11 percent against the dollar since august last year, export growth declined in the first few months of this fiscal, dropping to 14 percent in June from 23 percent in April.
There was a bounce back in July when exports grew by 18.52 percent in dollar terms. However in rupee terms, the growth has dipped to as low as three percent.
The Finance Ministry had announced a Rs 1,400 crore package for exporters after they approached the government for relief. According to the Federation of Indian Export organisations traditionally export-oriented sectors such as leather, textile and handicraft are worst hit by the rupee rise.
Earlier speaking at the golden jubilee celebrations of the export credit guarantee Corporation of India Ltd, Nath said: "The export sector has been recording a robust growth in the past few years with total export reaching USD 125 billion in 2006-07. This performance has been made possible by the combined efforts of all stake holders including the ECGC."
Nath released a book `special postal cover` on the occasion. ECGC provides credit insurance and other related services to exporters and banks.
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TRADE INDIA MAIL
