Exports may miss FY08 target

India's exports may fall 15-20 billion dollars short of the FY'08 target of 160 billion dollars, as a costlier rupee has had a pounding impact on some sectors, including textile.

"If the current rate of growth continues, the exports would be in the range of 140-145 billion dollars for the current year," said G K Pillai, commerce secretary, in New Delhi today. He said certain sectors like textile are facing problems because of the sharp appreciation in rupee value.

The Indian currency has appreciated 9.7% against the US dollar, the main invoicing currency for trade, between April 3 and November 20 this year.

The country's exports touched 98 billion dollars for the April-November eight-month period showing a cumulative growth of over 22%. "While there is an overall growth in exports, a sector-wise analysis would show that employment-oriented segments like textile, pharma, leather and handicrafts have registered a decline," said Ganesh Gupta, president, Federation of Indian Export Organisations.

He also explained that the respectable figure of 26.82% growth in November 2007 could be on account of sectors with high import content like petroleum performing well. The government had extended Rs 5, 200 crore worth relief package to the rupee-hit exporters by way of higher tax neutralisations through various schemes.