Can do exports worth $175 bn in FY09: Kamal Nath

Announcing the interim trade policy, Commerce and Industry minister Kamal Nath said that India will suffer less and will recover fast from the global crisis.

He stated that the government had rationalised calculation of FDI (foreign direct investment) and this will lead to further inflow of investment in India.

Government targets

India's exports in 2008 reached $162 billion and Nath hoped that India would achieve an export figure of $175 billion in FY09, despite recession.

He further stated that the government was aiming at doubling merchandize/trade in the next five years. "India had achieved a growth of 30.9 per cent in exports till September. We hope to achieve exports worth Rs 90,000 crore from SEZs in 2008-09," he said.

Announcements

In the interim trade policy, announced today, the custom duty under Export Promotion Capital Goods Scheme (EPCG) was cut to 3 per cent as compared to 5 per cent. Duty Entitlement Passsbook (DEPB) Scheme for exporters was extended to the month of December.

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The Commerce minister said, “Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange but the stimulation of greater economic activity.”

Kamal Nath stated that the government has remained focused on the twin objectives to double percentage share of global merchandise trade within the next five years, and to act as an effective instrument of economic growth by giving a thrust to employment generation. “In the five-year trade policy sectors with significant export prospects, coupled with potential for employment generation in semi-urban and rural areas have been identified as thrust sectors and specific sectoral strategies have been prepared. Special focus initiatives have been prepared for agriculture, handicrafts, handlooms, gem and jewellery, leather and footwear sectors.”

Kamal Nath said the government has issued clarifications on FDI norms through new Press Note. He sees room for interest rates to go down. "RBI will continue to remain proactive and will take measures when needed."

He further stated that $200 billion export target is achievable for next year.

The Commerce Minister also hopes that US, EU economies will revive on the back of stimulus packages. He is of the view that President Obama's new outsourcing policies will affect US companies the most.