Though India's exports grew by over 17 per cent during 2003-04, the government was likely to adopt a conservative approach in finalising the target to ensure there were no slippages, sources said. The 12 per cent growth target was in line with the medium term export strategy for 2002-07.

Commerce secretary Dipak Chatterjee is slated to meet export promotion councils, industry chambers and commodity boards on Tuesday to finalise the export target for 2004-05. Some sectors like the marine industry have lowered their growth projections for the fiscal.

Sources pointed out that the marine sector had been particularly affected due to non-tariff barriers in several countries. In addition, countries like the US have initiated anti-dumping proceedings against Indian shrimp exports.

Several marine units have outstanding loans to banks which is affecting their performance, sources added.

Another sector which is in favour of a more conservative growth estimate is the garment sector which is bracing itself for the post-quota regime starting January 1, 2005.

Several Indian exporters Business Standard spoke to are targeting a growth of 12-15 per cent during the current fiscal.

Others like the Gems and Jewellery Export Promotion Council and the Council for Leather Exports are projecting growth rates of around 10 per cent.

The Engineering Export Promotion Council has forecast a 20 per cent growth to $ 12 billion, while chemicals exports are also expected to rise 12-15 per cent.