December 03, 2008

Export target for 2008-09 too ambitious - ASSOCHAM

While welcoming most of stipulations of annual supplement to the foreign trade policy unveiled by Mr Kamal Nath union minister for commerce & industry, Mr Venugopal N Dhoot president of ASSOCHAM said that the target of USD 200 billion exports are too ambitious to achieve in view of global slowdown.

Mr Dhoot complimented Mr Nath by saying that extension of interest subvention for exporters for one more year is a welcome step. He added that "The other measures such as reduction of customs duty on import of capital goods from 5% to 3% under EPCG scheme are again a welcome measure. Still, other welcome measure includes extension of income tax exemption to 100% export oriented units till 2010."

He further added that though the target fixed for exports for fiscal 2008-09 has been fixed at USD 200 billion which is ambitious as the government is unlikely to achieve 2007-08 export target of USD 160 billion. He said ASSOCHAM expects only 15% to 16% of exports target growth in current fiscal which in realistic view should not be more than USD 170 billion.