New Delhi: India's exports are likely to register a growth of at least 10 per cent in the current financial year on account of improving demand situation in major developed markets like the US.
"We are hoping for at least 10 per cent (export) growth...US has already started improving. PMEAC in its report has clearly stated that US has started growing. So, that is good news. We also believe that Europe has also stabilised," said Commerce Secretary S R Rao.
The US and Europe are the major export destinations for Indian exporters and they contribute over 30 per cent in the country's total shipments. Due to the demand slowdown in these markets, India's exports started showing negative growth for eight consecutive months during May-December 2012 period.
India's exports in 2012-13 fiscal fell for the first time in three years reporting a dip of 1.8 per cent to $300.6 billion in 2012-13, taking the country's trade deficit to a record high level of $191 billion.
WTO has stated that the world trade in 2012 has expanded only by 2 per cent, which is less than half of the past 20 years average, Rao said.
"In the current year, WTO forecast is pegged at 3.3 per cent. So, any expansion of world trade should also give us competitive advantage in boosting our exports," he added.
The Commerce secretary also said the recently announced incentive package would help in increasing shipments from the country.
Expressing concern over widening trade deficit, Rao said "we have no option but to export". The government has set an export target of $325 billion for the current financial year as against the target of $360 billion in 2012-13 due to the global economic uncertainties.