New Delhi: The country's merchandise exports are likely to touch the $75-billion mark by March 2005 if the level of growth witnessed so far is sustained, the union minister for commerce and industry, Kamal Nath, said in the capital yesterday.

Speaking at a meeting organised by the ‘forum of financial writers’, Nath said all efforts were being made to facilitate exports, especially when the merchandise exports during April-August this year have already recorded a 26 per cent growth over the same period in the previous year.

"The challenge is to strive for sustaining the growth rate at 20 per cent and above for the next five years while the export target for the current financial year 2004-05 is pegged at 16 per cent. But I am determined that we shall exceed this. I want it to be at least 20 per cent," he said.

The minister noted that three weeks ago he had announced a comprehensive foreign trade policy 2004-09 with a preamble that clearly laid down the context, objectives and the strategies to achieve the country's goals in the foreign trade sector. The objectives were to double India's percentage share in the global trade within the next five years and ensure that it acts as an effective instrument of economic growth linked to development and employment.

Nath reiterated that "exports are vital for generation of employment and stimulation of economic activity, especially in the rural and semi-urban areas. An integrated approach to economic policy linked to external trade is, therefore, of critical importance to the health of the economy. And the Foreign Trade Policy is an important step in this direction." He added that the SEZ Act would be introduced shortly to boost the confidence of investors about the stability of the country's SEZ policy.

The proposed national conference on textiles scheduled for next month would provide useful insights into the post-MFA scenario for India, he said.

Referring to the WTO issues, Nath reiterated the crucial role played by India during the negotiations in Geneva in July last, which led to the adoption of the ‘framework agreement.’