NEW DELHI: Boosted by a forthcoming foreign trade policy, India's exports are expected to cross the $350 billion mark in 2014-15 and reach $750 billion by 2018-19, the Federation of Indian Export Organizations (FIEO).
"I am much optimistic that we would be able to cross $350 billion mark in 2014-15. Since the new foreign trade policy is likely to be announced shortly to be effective from 2014-19, FIEO projects an export target of $750 billion by 2018-19," FIEO president Rafeeq Ahmed told media persons here.
With the global trade scenario improving and expected to grow at twice the rate of 2.3 percent in 2013, Indian exports have done reasonably well in first four months of the current fiscal showing a growth of 8.62 percent in April-July and touching $107.8 billion, he said.
Ahmed said India's traditional markets like the US and Europe are also showing better economic performance. These regions account for about 30 percent of the country's exports. Slowdown in the western markets has severely impacted India's exports.
Exports growth slipped to 7.33 percent in July after registering double-digit expansion in the previous two months, pushing up the trade deficit to a year-high of $12.22 billion.
The country's exports in the last three years have been hovering at $300 billion. It was $312.35 billion, $300.4 billion and $307 billion in 2013-14, 2012-13 and 2011-12 respectively.
The government is taking several steps to boost the shipments, and is soon expected to announce measures in the forthcoming foreign trade policy (FTP), Ahmed said.
He suggested the government grant the interest subsidy scheme to all sectors and exporters and extend it till March 2017.
According to Ahmed, there is a need to revive the special economic zones (SEZ).
"There is a need for immediate withdrawal of minimum alternate tax and dividend distribution tax and restore the SEZ policy to its original form. This would go a long way in regaining trust and confidence of domestic and foreign investors," he said.
Ahmed also recommended the government announce setting up of country and product specific export clusters or parks on the lines of SEZs.
"It will help in making India a manufacturing and export hub. Government should give special emphasis on boosting the manufacturing sector as it impacts exports too," he said.
FIEO director general Ajay Sahai said exporters need to explore markets like Latin America, Russia and Africa.
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