India could explore the possibility of entering into rupee-based trade with African countries, said chief economic adviser Kaushik Basu at an event organised by the Federation of Indian Export Organisations (FIEO) here.

?China, which has a strong trade presence in Africa and holds foreign exchange reserves 10 times that of India, has introduced Renminbi-based trade with African countries recently,? he said, adding rupee-based trade could be considered in the light of many African countries holding low reserves of hard currencies to transact in world trade.

However, he cautioned that a China-like trade pact with African nations would not serve the best interest of India trade and exports due to the common colonial legacy of Africa and India.

?We should not inflict on them what the British have inflicted upon us. We have a common colonial legacy with Africa that we always recall while strengthening our mutual ties,? he said

Earlier, expressing optimism over the long-term growth of Indian exports, he added that share of exports in overall GDP stood at 11.6% in 2004-05, which soared to 14.2% in 2010-11. He furthered highlighted how Indian exports, which were up 10.8% in October, were able to put up a good show when the IIP numbers were not encouraging. ?One could attribute this to the product and market diversification processes. Except engineering goods, the Indian export basket largely constitutes of items like gem and jewellery. On the market side, around 56% of our exports reach Asean countries and 30% the US and Europe. It is emphatic to note that our exports to the US and Europe have dropped from 50% to 30%. Boosting commodity exports, we should focus on high-value and high-end items,? he added.

Basu asserted that the projection of 7.7% GDP growth in the short term was a good number amid tumbling growth around the world. ?Our capital account convertibility is well calibrated, our banking practices are strong and FDI inflows are good. Nearly 30% of the national income goes to saving and investment, indicating the sound fundamental health of our economy,? he said.

On streamlining of subsidies for the poor, he called for plugging the leakages in public distribution to benefit the end beneficiaries. ?In the context of fiscal consolidation and widening Budget deficit, the leaky bucket of public distribution should be plugged so as the subsidised food articles reach the targeted sections of the population,? he said.