Commerce Ministry expects 20% export growth this fiscal

Despite the fact that the global economy is slowing down, Commerce Secretary S R Rao has expressed his confidence that the Indian exports would grow by 20% in the current financial year and emphasized that India remains as the second-fastest growing economy.

Rao pointed out that the country has crossed the merchandise shipment target of $300 billion at $303.8 billion, posting the best trade numbers ever. The exports in June have dipped over 5%, while imports have shrunk over 15%, bringing down trade deficit to a 15-month low. India’s trade deficit stood at $185 billion last year.

He also confirmed that the government has taken steps to reduce the trade deficit this year. By adding further he said, that the exports of manufacturing sector are encouraged and anti-dumping duties to safe guard domestic manufacturing sectors is also imposed.

Federation of Indian Export Organizations (FIEO) president M Rafeeque Ahmed has opined that the increase in input costs, growing interest rates and resultant high costs of funds and the rupee volatility are major challenges for exporters.