New Delhi: Impacted by negative growth after September, India’s exports at best would expand by 6% this fiscal, but will decline in 2009-10, amid contracting demand for the country’s goods in the major markets of the West, commerce secretary G K Pillai said on Tuesday.
Taking a hard knock from the recession-hit markets in the US and Europe, India’s exports fell by 22% in January, dashing hopes of a recovery on the arrest in decline to 1.1% in December.
After an impressive growth rate of over 30% in the first half of the current fiscal year (fy), the overseas consignments began wilting since October. There was a tad improvement in the subsequent two months but exports contracted substantially in January.
While exports in fy2008-09 are growing by just about 6%, “it would be (an) achievement if we achieve $160 billion in 2009-2010,” Pillai told media on the sidelines of a function of the Export Promotion Council for EoUs and SEZs in New Delhi. In 2007-08 exports grew by about 24%.
According to government estimates, exports will grow up to $170 billion in the current fiscal year. However, shipments would shrink in the next year.
“There were not many orders in the last quarter,” Pillai said on Monday night. The government had set a target of $200 billion for this fiscal on the back of $162 billion achieved in 2007-08.
“Exports are going to come down and we have to live with (the problem),” he added.
Financial services firm Goldman Sachs says, “going forward, we expect exports to remain sluggish in fy10.“