The government is confident of achieving the $160-billion export target during the current financial year, despite a rise in the value of the rupee during the last 12 months.
Commerce Secretary GK Pillai said the government was holding discussions with export promotion councils to enhance exports. “We are confident of meeting the export target set for 2007-08, if the rupee remains at 40-41 to a dollar.
There is no need to revise the export target,” Pillai told reporters on the sidelines of a Confederation of Indian Industry (CII) seminar here.
In June, the government had announced a series of measures, including quicker refund of certain taxes, reduction in interest rate of exporters’ credit and offered interest on foreign currency earnings to cushion the adverse impact of the appreciating rupee.
The government has also decided to set up a committee to assess job losses owing to rupee appreciation and reduced premium on insurance cover to make exports more competitive. Exporters felt that the strengthening rupee was impacting new orders and resulted in employment loss.
A strong rupee was hurting exporters’ profitability and eroded competitiveness, exporters said. As a result they were losing orders to China, Thailand, Pakistan, Sri Lanka, Bangladesh, Vietnam and Indonesia.
Exports grew by nearly 16 per cent in dollar terms in July, compared with the corresponding period last year, Pillai said.
The government is also preparing a road map for achieving exports worth $300 billion within five years.