News: 'Exporters find $160 b export target unrealistic'

(PTI 02/05/2007) New Delhi - In the backdrop of a sharp rise in the value of Rupee and emerging slowdown in the global economy, a majority of exporters feel the export target of $160 billion set by the government is too ambitious, according to an Assocham survey. "Seventy nine per cent of exporters surveyed on 'Prospects of 2007-08 Exports Targets' fixed by government, feel that the $160 billion export target is too ambitious because of the rise in rupee value and slowdown in global economy, particularly the US and the EU," the Assocham Business Barometer said. Of the respondents, 59 per cent who showed concern on the appreciating rupee and sought RBI's intervention. Besides 80 per cent of exporters felt that further hardening of the rupee might lead to a sectoral slow growth. Fifty five percent of the respondents felt that global slowdown is one of the reasons for slower rise in exports and the trend would continue in the current fiscal. Sixty per cent said the growth in exports would be around 10-15 per cent in the current fiscal and the Government should take note of realities like hardening rupee, increasing interest rates, poor infrastructure facilities and increasing high transaction costs, which make Indian products uncompetitive in the global market The chamber said export growth is projected to be slower at 15.7 per cent given the projected decline in world GDP growth 0.5 percentage points and slower rise in international prices. "Given the forecasts and predictions by NCEAR, ADB and IMF give us a conclusion that achieving the target of $160 billion is quiet unrealistic and ambitious," Assocham President Venugopal Dhoot said.