Exports can grow 20 per cent in the current fiscal notwithstanding the global slowdown, a senior commerce ministry official said here on Friday.
“We are still the second fastest growing economy. I see turnaround in exports and indications are that we can achieve 20 per cent export target this year,” said Mr S.R. Rao, Commerce Secretary after meeting the exporters body FIEO.
Last fiscal, the country crossed the merchandise shipment target of $300 billion at $303.8 billion, making it the largest—ever trade numbers. But so was imports driven by high oil and gold prices which together accounted for nearly $220 billion.
Last month, exports dipped over 5 per cent while imports shrunk over 15 per cent, bringing down trade deficit to a 15—month low.
Director-General of Foreign Trade (DGFT), Mr Anup Pujari said the trade deficit stood at $185 billion last year.
“The government has taken steps to reduce the trade deficit this year. We are encouraging exports of manufacturing sector and impose anti-dumping duties to safe guard domestic manufacturing sectors,” Mr Pujari said.
Gold imports are also down due to price rise and duty levied on import of gold, he said.
Earlier, Federation of Indian Export Organisations (Fieo) president M Rafeeque Ahmed said increase in input costs, high interest rates and resultant high costs of funds and the rupee volatility are major challenges for exporters.