“It looks difficult to achieve the US$160 billion export target and for the current fiscal I expect the exports to be US$140 billion,” Commerce Secretary Gopal K Pillai told reporters here on the sidelines of a Ficci summit.
Mr Pillai based his estimates on the local currency slipping to Rs 38 a dollar. The rupee has appreciated over 10 per cent against US dollar since March this year.

The government, on Saturday, extended the number of services on which tax exemption was extended to seven. Interest on Exchanger Earners’ Account was reintroduced and more items were included for interest-rate subsidy.
Commerce & Industry Minister Kamal Nath had said he would not reduce the export target of US$160 billion, while the government would review the situation in consultation with export promotion councils.

Mr Pillai said while the commerce ministry had suggested a list of 16 services for tax exemption, the finance ministry has so far extended the facility to seven.

“We will look at the September export figures and see whether any particular sector needs more help,” Mr Pillai said. However, he asked exporters to get used to a fluctuating rupee.

The government may consider industry-specific steps to mitigate the impact of the rise in the rupee against the US dollar, Mr Pillai said, without providing details. India had achieved merchandise exports of US$125 billion in 2006-07 with a growth of 25 per cent.