Rediff.com  » Business » Govt to review export target of $200 bn

Govt to review export target of $200 bn

Source: PTI
Last updated on: November 17, 2008 15:09 IST
Get Rediff News in your Inbox:

Not sure whether the export momentum could be sustained in the face of the global slowdown, the government said on Monday it will review the $200-billion target set for the current fiscal.

"I am going to review this; the global economic slowdown is impacting exports," Commerce and Industry Minister Kamal Nath told reporters at the India Economic Summit in New Delhi.

Nath said the fiscal and monetary package for reviving exports would be discussed by the Prime Minister's high-powered committee, after maintaining an impressive growth rate of 30.9 per cent in April-September this fiscal.

"We are meeting today the prime minister's economic committee to discuss this," Nath said.

The meltdown impact was clearly visible in October, when exports declined by 15 per cent. The government has set a target of $200 billion in the backdrop of $162 billion in 2007 08.

However, several agencies like global consultancy firm Dun and Bradstreet have expressed doubts whether the growth momentum could be sustained.

The US and European Union, the two biggest markets for Indian exports, are in the grip of one of the worst economic crises.

Exporters seem desperate for inexpensive credit in a liquidity-starved financial market.

"We want post-shipment credit to be extended from 90 days to 270 days. Besides, pre-shipment and post-shipment credit in foreign currency may be made available at LIBOR plus 100 basis points," Federation of Export Organisations president Ganesh K Gupta said.

The impact of the global financial turmoil was clearly visible in October, when India's exports declined by 15 per cent. The govt has set a target of $200 billion for the current fiscal in the backdrop of $162 billion in 2007-08.

During April-September, the country registered a growth rate of 30.9 per cent to $94.9 billion.

However, several agencies like global consultancy firm Dun and Bradstreet have expressed doubts whether the growth momentum could be sustained.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2023 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!