Targets may not be met, warns Pillai
Even as exports recorded a decent performance of a 34% increase in October, the country would be able to make shipments worth only $140 billion as against the target of $160 billion for the current fiscal, commerce secretary has GK Pillai said. ?If this (October) trend continues, we may achieve exports of $140-145 billion against the target of $160 billion,? he told reporters on the sidelines of the India Economic Summit here on Monday.
In April, the government had revised its export target to $160 billion. Last year exports had barely managed to cross the $125 billion target.
Rupee has appreciated over 14% against the dollar in the last one year and in turn affected the bottomline of exporters. Pillai said what helped boost exports was an increase in shipments of petroleum products, gems and jewellery and engineering goods. He added textile, leather and marine products, tea and handicrafts had slipped.
He said while handicraft exports plunged 66%, textile exports decreased 22%, marine products around 20% and leather 9%. Pillai said the proposal, which was likely to be taken up by the Cabinet this week, could include sops such as extension of service tax exemption to new segments and refund of state-level taxes.
Of the 21 services which are taxable, exemption has been given to nine until now and the commerce ministry is pushing for 12 more.The government has given sops worth over Rs 5,200 crore so far. India?s exports in rupee terms grew 17.88% in October to Rs 52,561 crore and 7.06% in April-October 2007 to Rs 3.48 lakh crore. Imports too in rupee terms were up by 7.99% in October to Rs 82,126 crore and 11.07% in April-October to Rs 5.29 lakh crore.