New Delhi: If exports maintain an annual growth trend of 25%, Indian exports can cross $500 billion by 2014-15 from $220 billion expected in the current fiscal, FIEO said on Monday.
India’s apex exporters body Federation of Indian Export Organisations (FIEO) president Ramu S. Deora said emerging markets in Asia, Latin America, Africa and Middle-East countries would play an important role to achieve this ambitious target.
“Out of $500 billion exports, major chunk will be contributed by Asia with a share of $230 billion with Asean alone importing more than $100 billion from India. Exports to Africa and Latin America will zoom,” Deora told reporters.
He said that Central Asian nations like Kazakhstan and Uzbekistan and Commonwealth of Independent States (CIS) countries like Russia and Ukraine would also contribute in increasing Indian exports.
However, he said that the country’s exports to traditional destinations - the US and Europe - would go down to 15 and 10%, respectively.
Currently, the US and EU accounts for about 35% of India’s exports.
“Share of Europe and North America will be down to 15 and 10%, respectively as growth in advance economies will taper off,” he added.
India’s exports grew by 29.5% to $164.7 billion during April-December 2010-11. In December 2010, the shipments grew by 36.4% year-on-year.
In 2010-11, the outbound shipments are expected to touch $220 billion.
Commerce secretary Rahul Khullar has said that demand for Indian goods are increasing in emerging markets.
“Over $500 billion exports by 2014-15 would require a compund annual growth rate of about 25% which is ambitious but definitely achievable,” he said.
The president asked the government to act immediately on the bottlenecks like infrastructure and reducing transaction cost to achieve the milestone.
“Quantum jump in investment would be required in roads, ports, airports, containers, power and telecommunications, cold storage and refrigerated vans and warehouses, so as to augment the installed capacity,” Deora said.
He added that fluctuation in exchange rate hurts exporters and importers, so the government should consider full convertibility of Indian rupee to curb high volatility.