Initially, the commerce ministry had not set an export target for this year in light of the dismal performance during the last three consecutive years. But, looking at the revival trend, the ministry set a target of 11 per cent towards late July last year which has been achieved.

But many argue that the export performance only looks impressive because of the low negative base of last year and it is just a statistical fallacy. But that is not the case.

Traditional segments such as gems and jewellery, cotton yarn, fabrics, readymade garments, transport equipment and chemicals have registered significant improvement in their performance.

The current turnaround in the economy has supported this good export performance. Also, a stable Rupee, low inflation, world demand picking up and revival of the South East Asian economies have all contributed towards India achieving a high export growth.

Revival in domestic demand and large-scale restructuring have to a certain extent also helped in improving capacity utilisation, cost and competitiveness of the industrial sector. Recovery in the world prices after the recent slump has also contributed to the revival in a big way.

The real challenge that the commerce ministry faces is not only to sustain this good performance but also to improve the growth rate in future. It should ensure that this trend is not short lived. Commerce minister Murasoli Maran has already taken a step in this direction. After announcement of the Exim policy 2000-2001, which is quite challenging, the minister has set an overambitious exports target of 20 per cent.

As to whether such a steep target is achievable at all is difficult to predict at the present juncture. But, with the removal of quantitative restrictions on imports on many items, it may marginally support exports. But at the same time, with non-oil imports not improving, the target appears to be unachievable.

Well, it is too early to predict anything. Instead, India should try and improve its competitive strength. WTO has predicted a favourable world trade environment which the Indian exporters should fully take advantage of.

As pointed out by the Economic Survey 1999-2000, there exists a mismatch in the structures of world trade and India's exports. Hence, it is imperative for India to strategically plan its exports.

For instance, it should expand its export basket, eliminate artificial restrictions on agro exports and reduce the reservation list of the small scale sector. The government should also aim at improving the infrastructural health of the economy and provide institutional help to exporters. This, if done in right earnest, will help India achieve higher growth in the future.

On balance, just announcing policies and aping the Chinese model will not suffice if the high export target of 20 per cent is to be reached.

Beside the above requirements, India should work towards bringing in more transparency into the system for facilitating higher exports.