New Delhi: Government today (Aug 31, 2004) said it is confident of achieving 20 per cent export growth this year, four per cent more than the target, following the measures announced in the National Foreign Trade Policy.

"We are confident of achieving over 20 per cent growth this year on the back of over 24 per cent growth in the first quarter of this fiscal," Commerce and Industry Minister Kamal Nath told sources in an interview after unveiling the Policy.

Over 20 per cent growth compounded over the next five years is possible, he said adding it would take India's merchandise exports to $ 173 billion, which is more than double the current exports at $ 70 billion.

India's is also expected to have additional $ 50 billion worth of services export this year. By 2009, India's services exports are likely to touch $ 150 billion.

He said the National Foreign Trade Policy has a vision and it goes much beyond the Exim Policy. It gives a new direction to achieve incremental economic activity through increased exports and employment generation.

"Exim policy was only procedural corrections and had no vision. That is the basic difference between this policy and the previous Exim policies," he said.

"The policy has an ambitious target of attaining 1.5 per cent world trade. For this, we must grow at 20 per cent compounded rate and I see that happening," he said.