Commerce Ministry preparing new action plan to double exports to $500 billion

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With merchandise demand slowing down in global markets, the Commerce Ministry is drawing a new strategy for achieving exports of USD 500 billion by the end of 2013-14.

"It will take around a month to prepare the action plan. The focus will be on reducing transaction costs of exporters, ensuring they do not face non-tariff barriers in the importing countries," a senior Commerce Ministry official said.

While the ministry had drawn a strategy paper in May last year on doubling exports in three years from USD 251 billion in 2010-11, deteriorating conditions in the global economy require a fresh look at the gameplan, the official said.

The African continent, which has shown resilience along with Asia despite turmoil in the European markets and slowdown in the US, would be the main plank for the action plan being worked out by the Commerce Ministry.

It has identified 25 African countries, including South Africa, Nigeria and Egypt to achieve increased shipments for about 200 Indian products including pharmaceuticals, fruits and vegetables and textiles.

"We are trying to create a matrix. We will see which product has major demand in a particular nation and what type of problems an exporter faces," the official said.

The final strategy will be prepared after the government-industry interface. "We will consult exporters for the feedback. They know what is the potential and where are the issues."

Africa, which is growing by about 4.5 per cent per annum. Although, India's total merchandise exports to this region stood at only USD 16.28 billion in 2010-11, huge demand is there for Indian goods.

Besides, Latin American and Asian markets are also emerging as major export destination for Indian products after demand slowdown in the traditional markets of Europe and the US.

India's exports grew by 21 per cent to USD 303.7 billion in 2011-12. However, according to officials, this year would be more difficult for exporters. In April, the shipments declined by 4.16 per cent year-on-year.