27% H1 Export Growth may Help India Beat FY'11 Target: Sharma.

NEW DELHI: Robust growth of over 27 per cent in exports during the first six months of FY'11 has fuelled hopes that India may cross the trade target of USD 200 billion for the entire fiscal, Commerce and Industry Minister Anand Sharma said here today.

In April-September this fiscal, Indian exports aggregated to USD 103.30 billion, a 27.6 per cent increase vis-a-vis the corresponding year-ago period.

"In the first six months, we have achieved USD 103 billion (worth of exports) and am sure that we will be on course to complete USD 200 billion (target) and go beyond," Sharma said after inaugurating the annual India International Trade Fair (IITF).

India's exports, which declined by over 3 per cent to USD 178.75 billion in 2009-10, shot up by an annualised 23.2 per cent in September this year to a two-year high of USD 18.02 billion.

Stressing on the need to increase India's share of global trade, Sharma said, "By 2014, we expect to double India's export of goods and services. It shall be our endeavour that industry and government work in tandem and work closely to achieve this target as well."

To reduce dependence on US and European markets, the minister said exporters have been encouraged to look beyond traditional destinations at new markets like Africa, Latin America and the Far East.

To pave the way for greater engagement with other regions, India had last year signed two trade pacts with Korea and the Asean grouping.

Sharma said in January, 2011, India will sign two more Comprehensive Economic Partnership Agreements (CEPA), one with Malaysia and another with Japan, and will commence negotiations for a separate pact with Indonesia.

The CEPA , or free trade agreement, with Japan would reduce or eliminate tariffs on over 90 per cent of goods traded between the two nations. The negotiations were concluded during Prime Minister Manmohan Singh's visit to Tokyo last month. The pact will be implemented in April.

The negotiations on a free trade agreement with Malaysia were concluded in October during the Prime Minister's visit to Malaysia. The agreement will come into effect from July 1, 2011.

Emphasising that the country will go for more free trade agreements, Sharma said, "We will be launching more (FTAs) and we are in the final stages of concluding a broad-based agreement with the EU."

He added that once these become fully operationalised, in the next five years, exports would increase dramatically.

Source : economictimes.indiatimes.com