Namrata Kath Hazarika | 28 May, 2012
Observing the current situation of Indian economy, it will be very difficult for India's exports to reach the growth target of USD 350 billion, said the Federation of Indian Exporters Organisation (FIEO), President, M Rafeeque Ahmed.
"Looking the present or immediate market scenario, I think it will be very difficult to achieve a growth of 15 percent in the current fiscal. We have to see how our exports will perform in the current fiscal. We need to observe the second half of the fiscal as well," Ahmed told SME Times.
He added that it is will be difficult for exports to touch USD 350 billion and the government's target for USD 500 billion by 2014-15 even seems to be quite challenging.
Commenting on the rupee depreciation, he said that international demand for Indian export products have declined tremendously. It is not enough at the moment. So, in that case, we are unable to reap out much benefit from weak rupee.
"In fact, our imports are also expensive. There are certain products which we need to import such as raw materials, which is becoming expensive day by day. We have to pay more for our imports. So, this is causing us trouble," he added.
Further, the high rate of interest is hurting the export growth rate. "Credit availability at a low rate of interest is essential and is need of the hour. And, whatever measures are already existing those needs to be continued in future. This will help India's exports to grow in the near future," Ahmed said further.
Dwelling his views in this context, Sanjay Budhia, Chairman, CII National Committee on Exports and Imports said recently that India can reach the export target of USD 350 billion for this year if an export-friendly FTP is announced taking into account the concerns of exporters.
India needs to look for new markets, new products, change in the business sentiment to positive which could spark a virtuous cycle in investment and growth, he added.
"We are confident that the exporters with their resilience and entrepreneurship will find new ways to reach the export target," he mentioned.
"The slowdown in the US and Euro Zone will affect the market for exports in these traditional markets," Budhia said.
India's merchandise exports grew by 21 per cent year-on-year in 2011-12, to USD 303.7 billion.
