Country?s exports growth, which stood at a brilliant 46% in April-June this fiscal, is expected to slow down from August-September onwards on lingering uncertainties in the US and the euro zone, commerce secretary Rahul Khullar said on Monday. There would be a slowing of exports ?with almost immediate effect? owing to retarded pace of recovery in the developed world, he said, adding the country ?would be lucky? to achieve 20% exports growth in 2011-12.
Khullar said the government was working out certain policy measures to assist the exporters.
India had set a target to clock exports of $500 billion by 2013-14, which requires an average growth rate of about 25% a year.
The official said the exports became jittery since the US and EU, the major exporting markets for the country, showed signs of a slowing of pace of recovery. Since consumer spending in the US is expected to decline, the exporters would have to produce cheaper goods. He said, ?People in the US will shift to cheaper alternatives in the coming festival season. With the scare being all over the markets, the textile spring orders will be scrapped and even the gems and jewellery exports could be hit. He also said the commodities exposure by the investors will be seen growing. He added, ?gold exports might surge because of investment driven consumption.? He however, cautioned again that the economic uncertainty in the euro zone and the US could lead to a demand curb which might also result in the fall of Imports.
India?s exports in June rose an annual 46.5% to $29.2 billion, while imports for the month rose 42.5 % to $36.9 billion.