The government on Friday said it isn’t aiming to achieve the initial $900-billion target of goods and services exports by FY20, as situations have changed considerably over the past three years.
The commerce ministry has now asked various export promotion councils to prepare a sector-wise, time-bound roadmap to improve exports, commerce and industry minister Suresh Prabhu said on Friday after meeting the representatives of various councils and other trade and industry bodies. Based on their inputs, the ministry will finalise the export strategy. There is no clarity yet if the government will announce the mid-term review of the foreign trade policy (2015-20), which was expected to be held later this month, anytime soon.
Commerce secretary Rita Teaotia said under ideal circumstances, the initial export target of $900 billion was achievable. But given several factors, including strong rupee and global headwinds, the government isn’t aiming for it anymore. Goods and services exports as a proportion of GDP have hit a six-year low of 19.4% (in Q1, FY18) in real terms, despite merchandise exports rising over the past 12 consecutive months.