Export target hinges on revival of global economy: Fitch

June 5th, 2012 - 8:30 pm ICT by IANS  

Chennai, June 5 (IANS) The government’s target of 20 percent growth in exports during 2012-13 would depend largely on the revival of global demand, said credit rating agency Fitch Ratings.

The government Tuesday set a target of increasing exports by 20 percent in 2012-13 and announced a series of measures, including extension of the interest subvention scheme by one year till March 31, 2013, for labour intensive sectors like toys, sports goods, processed agricultural products and readymade garments.

“The basic philosophy behind this is to make Indian exports competitive, which along with depreciating rupee have a favourable impact. However, attaining 2012-13 exports growth target in a sluggish global economic environment would depend largely on revival of global demand,” said Devendra Kumar Pant, director, Fitch Ratings.

Despite significant depreciation of the rupee, exports in April 2012 grew by just 3.2 percent, a pointer towards larger impact of global demand on exports, he added.

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