New Delhi: India’s exports were in line with the Foreign Trade Policy (FTP) 2004-09 targets but for the last fiscal when the country’s merchandise trade became a victim of demand recession in the US and Europe and ended flat.
India’s merchandise exports recorded a compounded annual growth rate of 21.5% during 2004-05 to 2008-09.
Exports till 2007-08 have been in line with the targets in the trade policy, the Ouctome Budget document said.
“The success story continued into the first half of 2008-09. However, India’s exports were adversely affected from September 2008 onwards due to the deepening global economic slowdown...,” it said.
After growing at 31.3% in the first half 2008-09, exports plunged by 22.3% in the remaining six months, falling short of the $200-billion target. For the fiscal, exports were $168.7 billion, a flat growth of 3.5%.
The FTP had two objectives -- doubling India’s percentage share of merchandise export and making trade an instrument of economic growth -- and “both the objectives of the FTP have been considerably met”, it said.
India’s share in the global merchandise trade increased from 0.8% in 2003 to 1.4% in 2008, it said adding the export sector also created a large number of jobs.
The Government will unveil the new FTP, which will spell out the priorities segments in the external trade, in August.