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The government has set an export earnings target from goods at $41 billion with a 21.76-per cent growth for the current financial year 2020-21 after the dismal performance on the export front in the recently concluded FY2019-20 due to the coronavirus pandemic.
The earnings target from goods set for FY21 is $7.33 billion higher than the earnings of $33.67 billion in FY20.
Earlier, the government had set a target to earn $45.5 billion in goods exports for FY20, but the actual earnings in the year were 26 per cent lower than the target.
The earnings in FY20 also fell by 16.93 per cent or $6.86 billion from $40.53 billion in FY19.
Commerce minister Tipu Munshi will announce the export target for FY21 officially today.
Experts said that considering the on-going global trade scenario, the 21-per cent export growth rate was high but achievable.
According to the commerce ministry officials, the export earnings target from readymade garments for FY21 has been set at $33.37 billion, which is 20.8 per cent higher than the earnings of $27.95 billion generated in the just concluded financial year 2019-20.
The services export target has been set at $7 billion for FY21 with a year-on-year growth of 9 per cent.
‘The government has set the target from the point of view of last year’s depressed situation. If the 21-per cent growth target is achieved in FY21, the export earnings would be equivalent to what the country earned in FY19,’ Centre for Policy Dialogue distinguished fellow Mustafizur Rahman said on Wednesday.
He said that it would be challenging to achieve the export target amid the global economic slowdown caused by the coronavirus pandemic.
‘It will be possible to overcome the supply side constraints but demand side constraints will not be lifted soon,’ Mustafiz said.
It is logical for the government to be thinking of a higher growth rate based on last year’s negative growth and whether that target can be achieved will depend on the performance of RMG largely, he said.
Mustafiz said that despite the 16.93-per cent negative export growth in the just concluded financial year, the performances of jute, pharmaceuticals and footwear were positive and the government should go for product diversification.
He also stressed market diversification, saying that ‘growth on the Asian market would be higher in the coming days and we have to tap into the potential of the market’.
Mustafiz also said that although the target set by the government was challenging, it was achievable.
(NA)
