Country's exports seen touching $500 billion by 2014-15

Ramu S Deora

“The export target of $500 billion by 2014-15 can be achieved. This would require an annualised growth rate of 25 per cent. This growth rate appears ambitious but is definitely achievable,” Federation of Indian Export Organisations (FIEO) president Ramu S Deora said here on Monday.

Outlining a strategy to boost export he said that the growth momentum of export could be maintained on a sustainable basis by focusing on identifying new emerging markets for Indian goods and services and development of export infrastructure, he suggested.

The country’s export, which posted an impressive 36.4 per cent growth rate in December — the fastest in the last 33 months, now appears to be on path of high growth trajectory after witnessing negative growth for considerable period of time on account of global slowdown.  

Emerging markets in Asia, Latin America, Africa and Middle-East countries would play an important role to achieve this ambitious target. Of the projected $500 billion dollar exports, a major chunk will be contributed by Asia with a share of $230 billion with Asean alone importing more than $100 billion from India, Deora said quoting a study made by the FIEO.

India Asean Free Trade Agreement will provide an impetus for boosting India’s export to South East Asian region.

“Export to Africa will zoom to $75 billion while export to Latin American countries will touch $50 billion by 2014-15.

However, share of Europe and North America in India’s export basket will be down to 15 per cent and 10 per cent respectively as growth in advance economies will taper off.
Still by 2014-15, export to Europe will reach $75 billion while North America may see its import from India touching $50 billion. With Russia leading the way, Central Asian Republics and CIS countries will be market for 20 billion dollar exports by 2014-15.

“However, the government should identify the requirement of infrastructural development catering to export sector to meet the $500 billion export target,” Deora said.

Quantum jump in investment would be required for development of  roads, ports, airports, container services, power and telecommunications, cold storage and refrigerated vans and warehouses for perishable commodities, the FIEO Chief suggested.

The present “bottlenecks” in various segments of infrastructure calls for immediate intervention, he said.

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