India not to achieve $325b export target this fiscal: FIEO

Tags: Economy
India's exports will not be able to achieve the target of $325 billion in the current fiscal and will fall short by about $10 billion, FIEO today said.

"Domestic factors like declining manufacturing growth and slow improvement in the global demand are the main reasons for slow growth in the country's exports.

"We will not be able to achieve the $325 billion exports target," Federation of Indian Exports Organisation (FIEO) President Rafeeq Ahmed said.

The country's merchandise exports would touch $312-315 billion by the end of this fiscal, ending March 31.

During April-January, exports grew by 5.71 per cent to $257 billion, while imports dipped by 7.81 per cent to $377 billion. The trade deficit was about $119 billion.

In the remaining two months (February and March), the country requires about $70 billion to reach the target.

Finance Minister P Chidambaram in the Interim Budget speech has said that India's exports are expected to grow by 6.3 per cent to $326 billion during the current fiscal.

In 2012-13, the outbound shipments declined by 1.8 per cent to $300.4 billion.

Ahmed said that liquidity is a big issue for exports and pending claims of refund of service tax, duty drawback, rebate claims and VAT are affecting exports.

"The government should not fix annual targets for exports. We should fix a target for five years and work accordingly," he added.

FIEO is working on a paper for the new Foreign Trade Policy for 2014-19.

"In the next two and a half months time, we will submit the paper with our recommendations to the new government. It will includes measures which should be taken up to boost exports," Ahmed said.

There is an urgent need to enhance investments in building infrastructure such as roads and ports, he said.

"Inadequate infrastructure is impacting exports. Transactions costs is very high," he said, adding that the banks should provide credit at affordable rates to exporters.

The manufacturing sector, which constitutes over 75 per cent of the index, declined by 1.6 per cent in December, as against a contraction of 0.8 per cent in the year-ago period.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • FDI in insurance must be allowed with a rider to increase penetration

    The Union cabinet has cleared the proposal to raise foreign direct investment (FDI) in the insurance sector through the FIPB route from the current 26

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

Which is safer? Flying or driving?

The recent tragedies involving the Taiwan’s TransAsia Airways flight, and ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture