New Delhi: The Government today (Dec 28, 2006) said the country's merchandise exports grew 24 per cent in 2006 since January to 103 billion dollars.

At 24 per cent growth in 2005-06 and 27 per cent in 2004-05, exports are growing three times faster than GDP growth, an official release said.

"We are going to hit 125 billion dollars in exports in the current financial year," Commerce Minister Kamal Nath was quoted as saying.

Exports during April-November 2006 have already reached 80 billion dollars showing a record growth 39 per cent.

According to Nath, employment generation in the export sector was being accorded the highest priority. In its annual supplement, the Foreign Trade Policy announced in April sought to achieve increased employment generation by identifying the labour intensive focus areas.

"These included fish and leather products, stationery items, fireworks, sports goods and toys, handloom and handicraft. These were covered under the Focus Product and Focus Market Scheme and enjoyed duty credit facility at 2.5 per cent of the FOB value of exports of specific products and notified countries," it said.

Gems and jewellery sector was also given encouragement by facilitating easier product movement across the borders and allowing import of precious metal scrap for refining.