The Government may reduce the export target of $500 billion for 2013-14 fixed in the Strategy Paper for Doubling of Exports formulated two years ago forced by harsh global economic conditions that resulted in a fall in exports last year.

The Commerce Department has decided to carry out a Mid-Term Review of the Strategy Paper focussing on moving away from conventional exports and also work on a separate strategy for the 12th Plan Period (2012-17).

“We want to formulate a discussion paper as part of the review that would identify the various factors contributing to lower exports than projected. It would focus on sector wise policy measures, the achievements so far and the steps which remain to be taken,” a Commerce Department official told Business Line .

The official added that the doubling of exports by 2013-14 projected two years ago was based on the economic conditions prevalent at that time and was optimistic in its approach.

Exports in 2012-13 fell 1.76 per cent to $300.6 billion compared to $306 billion the previous year, as orders from the European Union and China dried up.

“Although we are hoping that the global scenario would improve this fiscal, the situation in the EU is still fluid and there is no guarantee that the US would continue to stay stable. Under these circumstances it would be foolhardy to hope for a sharp rise in exports,” the official said.

All commodity divisions, including rubber, tea, coffee and textiles, have been asked to give inputs on the potential and problems particular to their sectors. Sectoral ministries and departments like agriculture, textiles, pharmaceuticals and heavy industries would also be consulted. “After receiving feedback from all concerned on the discussion paper, the Department would develop a long-term strategy for the entire Twelfth Plan period,” the official said.

The draft strategy is to be finalised by the end of December 2013.

amiti.sen@thehindu.co.in

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