"We are likely to miss the export target of $300 billion set for the current fiscal and achieving $500 billion exports by 2013-14 seems to be difficult," cautioned FIEO's new president M Rafeeque Ahmed.

"Reaching $500 billion in next two years would require compound annual growth rate of over 29 per cent, which is a tall order," Ahmed said in his first press meet after taking over the president.

India's exports grew by 25.8 per cent to $217.6 billion in the first three quarters of 2011-12. The average growth in the first three quarters is healthy, mainly because of a high export growth registered during the first six months of the fiscal, Ahmed continued.

In fact, export growth had dropped to 3.87 per cent in November and 6.7 per cent in December. This has raised concern over the growth in the remaining period of the year. Ahmed said exports had registered healthy growth in the past couple of years partly because of high commodity prices.

"In 2010, the commodity prices went up by 26 per cent, which also helped our exports figure. Commodity prices, particularly of metals, are softening, which will reduce the export value of the end products as well," he added.

He said the new challenges emerging on the scene require flexible and concerted strategy by the Government and the entrepreneurs.

The FIEO has recommended the key issues including urgent need to reduce the costs of credit, need to extend interest subvention beyond 31st March 2012 for all sectors of exports, GST to replace multiple taxes and Union Budget 2012-13 to exclude expressly transactions in the course of exports, royalties, offshore and professional services from TDS.

He said that the biggest disadvantage faced by the exporters was the prevailing high interest rates.

The FIEO president has also emphasized on speeding investments on infrastructure. "If India requires to maintain an edge over its rivals in the export field, it is important that infrastructure and capacity building should be put in place," he said.