New Delhi: Due to the constant fall in the export growth rate, the trade deficit figures have reached alarming levels. Exports grew by 4.2 percent in February 2012, whereas imports have seen a surge of more than 20 percent. It is considered that with the growing protectionism in developed countries, India’s export may worsen.

Union Commerce Minister Anand Sharma is going to present annual import-export policy in next few days. With constant decline in export growth rate in last six months, meeting the USD 300 billion target of current FY seems unachievable. During April 2011 and February 2012, USD 267.4 billion export has been done. Due to strong growth in first 4-5 months, the export growth rate has reached 21.4 percent but there the challenges are lying ahead of the government. It is conjectured that exports will be around USD 290 billion in the current financial year. It becomes interesting to see the Commerce Minister’s approach on this issue.

The government is facing challenges to tackle the rising trade deficit. The Commerce Secretary Rahul Khullar says that the state of trade deficit is cause of big worry. There have been slump in exports since October 2011, whereas import growth rate is stable. In the last 11 months, import has grown by more than 29 percent. Trade deficit has gone upto USD 166.7 billion. According to president of FIEO, M Rafeeque Ahmad, due to global slowdown the developed nations will be promoting their products and will not depend on imports from other countries. Due to this reason, increasing exports will be difficult for India in coming months. Next six months going to be tough for exports.