Indian exporters need about 100 billion rupees ($1.84 billion) of government assistance to boost overseas sales, the head of an industry group said.
“A realistic export target for India for the year through March 2014 will be $360 billion to $375 billion,” Ajay Sahai, the chief executive officer of the New Delhi-based Federation of Indian Export Organizations, said in an interview late yesterday. Sixty percent of the money should be used to fund the promotion of India’s overseas sales and the rest to subsidize credit for exporters, he said.
An uneven global recovery has hampered Indian shipments, which climbed 4.2 percent in February after declining for most of the prior 12 months. Struggling exports have contributed to a record current-account deficit, adding pressure on the government to lure foreign capital and take steps in the trade policy statement due April 18 to spur overseas sales.
The current-account gap reached $32.6 billion in the quarter ended Dec. 31, or 6.7 percent of gross domestic product. The shortfall has weighed on the rupee, which has weakened 6.8 percent against the dollar in the past year, the most after the yen in a basket of 11 Asian currencies tracked by Bloomberg.
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