FIEO says export target of $325 bn will not be met in FY14


FY14 export target to fall short by $10 bn, says FIEOThe Federation of Indian Exports Organisation (FIEO) has said India’s exports will not be able to achieve the target of $325 billion in the current financial year and will fall short by about $10 billion.

In 2012-13, the outbound shipments declined by 1.8 per cent to $300.4 billion.

“Domestic factors like declining manufacturing growth and slow improvement in the global demand are the main reasons for slow growth in the country’s exports. We will not be able to achieve the $325 billion exports target,” FIEO President Rafeeq Ahmed said.

The country’s merchandise exports would touch $312-315 billion by the end of this fiscal, ending March 31.

During April-January, exports grew by 5.71 per cent to $257 billion, while imports dipped by 7.81 per cent to $377 billion. The trade deficit was about $119 billion. In the remaining two months (February and March), the country requires about $70 billion to reach the target.

During April-January, exports grew by 5.71 per cent to $257 billion, while imports dipped by 7.81 per cent to $377 billion. The trade deficit was about $119 billion. In the remaining two months (February and March), the country requires about $70 billion to reach the target.

Ahmed said that liquidity is a big issue for exports and pending claims of refund of service tax, duty drawback, rebate claims and VAT are affecting exports.

“The government should not fix annual targets for exports. We should fix a target for five years and work accordingly,” he added.

FIEO is working on a paper for the new Foreign Trade Policy for 2014-19.

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SOURCE: Business Today

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