Enthused by a near 19 per cent growth, the Economic Survey on Monday predicted that India's exports could increase by 50 per cent to $150 billion in next three years provided government pushed reforms and took measures to improve infrastructure facilities.
Identifying infrastructure as the single most important constraint in increasing exports, the Survey tabled in Parliament said achievement of the ambitious target of attaining 1.5 per cent world trade by 2009 or exports of $150 billion could be attained only if these bottlenecks were removed.
Recommending a more aggressive push to FDI in export industries, the Survey said such a move will not only increase the rate of investment in the economy but also infuse new technologies and management practices in these industries.
To achieve the set target, exporters will also have to gear up by putting more emphasis on non-price factors like products quality, brand image, packaging, delivery and after sales service, the Survey pointed out.
Noting that India's merchandise trade had grown by over 20 per cent in the last three years, recording $80 billion in 2004-05, the Survey pointed out that there had been a shift to high value gems and jewellery items from fabrics and fibres.
The manufactured goods garnered a share of 73.7 per cent in total merchandise export which grew at 21 per cent, petroleum products managed 91 per cent despite the fire at Mumbai High and engineering and minerals sectors recorded good performance.
More from rediff