Exporters of India find $160 bln export target unrealistic

"Seventy nine percent of exporters surveyed on 'Prospects of 2007-08 Exports Targets' fixed by government, feel that the 160 billion dollars export target is too ambitious because of the rise in rupee value and slowdown in global economy, particularly the US and the EU," the Assocham Business Barometer said.

Of the respondents, 59 percent who showed concern on the appreciating rupee and sought RBI's intervention. Besides 80 percent of exporters felt that further hardening of the rupee might lead to a sectoral slow growth.

Fifty five percent of the respondents felt that global slowdown is one of the reasons for slower rise in exports and the trend would continue in the current fiscal.

Sixty percent said the growth in exports would be around 10-15 percent in the current fiscal and the Government should take note of realities like hardening rupee, increasing interest rates, poor infrastructure facilities and increasing high transaction costs, which make Indian products uncompetitive in the global market

The chamber said export growth is projected to be slower at 15.7 percent given the projected decline in world GDP growth 0.5 percentage points and slower rise in international prices.

"Given the forecasts and predictions by NCEAR, ADB and IMF give us a conclusion that achieving the target of 160 billion dollars is quiet unrealistic and ambitious," Assocham President Venugopal Dhoot said. - DDNews India