Trade winds

New Delhi, Feb. 28: The survey today cautioned that the global slowdown, particularly in the US, would impact India's export growth in 2008-09 and advised the government to provide relief to exporters in the wake of the costlier rupee.

“The outlook for exports in 2008-09 may not be as bright as in the past few years with lower projections in world imports and exchange rate developments,” the survey said.

India's exports stood at $111 billion in April-December 2007, registering a growth rate of 21.6 per cent. But it may fall short of the $160-billion target for the year.

It said the two developments that should be monitored were the fall in export growth in general and the slide in exports in particular to the US and the EU.

“Though exports to the US have already been slowing in 2006 and 2007, a further slowdown may be unavoidable, but may be relatively modest. The slower Indian economic growth in 2007-08, relative to 2005-06 and 2006-07, may also have a temporary dampening effect on capital inflows,” it said.

SEZ worry

Acquisition of land for developing special economic zones (SEZs) continues to be a cause for concern, the survey said. The annual economic progress card, however, also pointed out that exports from SEZs had been steadily increasing.

“If perforce a portion of double-cropped agricultural land has to be acquired to meet the minimum area requirements, especially for multi-product SEZs, the same should not exceed 10 per cent of the total land acquired for the SEZ,” the survey said.

The government has advised state governments to give priority to acquiring wastelands, and if only necessary, single-crop agricultural land, before handing them over to developers for a SEZ.