New Delhi, June 8: Say it a confidence or sear ignorance of reality, India's Minister for Commerce, Industry and Textiles, Anand Sharma is confident that the country will achieve the ambitious export target of US$500 billion in fiscal 2013-14.
Speaking at the FICCI Seminar on Foreign Trade Policy Sharma counted factors that would help achieve the target. These included the country's strategy to reach out to newer markets in Asia, Africa and Latin America.
He further said that the addition of 7 new markets to the Focus Market Scheme and 46 new items to the Market Linked Focus Product Scheme would enable the country to achieve the export target. Expressing dissatisfaction over the recovery process in traditional US and EU market Sharma said,"We could not wait for demand to revive in our traditional markets."
"We recognized the need to expand the scope and coverage of the Focus Market Scheme which now covers 112 markets across the world," the Minister said. He said that Asian, African and Latin American market contributed 62% of India's total export, amounting US$ 188 billion.
He further said that through Free Trade Agreements (FTAs) India is trying to enhance its presence in new markets and the country is now close to concluding a broad-based trade and investment agreement with the EU. India's exports after growing at average 25% in last few years is witnessing downturn as demand in traditional markets dwindled due to financial crisis.
Last week government announced several measures to protect exporters interest and boost exports. However, the volatile Rupee against Dollar, which depreciated from 48 a dollar to 56 a dollar is a matter of concern for trade community.
India's GDP growth, after clocking 8% plus growth rate in FY11, touched new low of 5.3% growth in the last quarter of FY12. And budgetary target of 7.5% seems to be far cry, when government is fiscal consolidation mode to control deficit. There is no room for government to increase investments internally or externally.
Anand Sharma is a minister and he is under oath to speak the truth, not bluff market. He should better focus on fundamentals and create conducive environment for export growth, unfortunately nothing is in his control.