The PM's economic advisory panel today projected about 10% increase in India's exports to $329.7 billion during the current fiscal in view of some improvement in the global growth situation.

In the 2012-13 fiscal, the merchandise exports stood at $301 billion.

The Prime Minister Economic Advisory Council (PMEAC) report said the imports may touch $542.7 billion during the current fiscal, from $501.1 billion in 2012-13.

"Growth of merchandise exports, valued in US dollars, is disappointing, from the period starting in the second half of 2011-12 and continuing through 2012-13," it said.

The trade deficit is expected to increase to $213 billion in 2013-14, from $200 billion in the previous fiscal, the report said.

It said the biggest export casualties in 2012-13 are engineering goods, man-made textiles and ready-made garments.

"The two important import-intensive export categories gems & jewellery and refined petroleum products also fared poorly," it said.

The pattern of India's merchandise trade is undergoing a structural shift, the report said, adding that the rest of Asia, Africa and Latin America are becoming an increasingly important part it's trade portfolio.

"Global growth although projected  to pick up in 2013 would continue to remain at modest levels," it added.

Further, it said the share of exports to the European Union has declined from 21.1% to 17% during 2006-07 to 2012-13. The share of north America dipped to 14.1% from 16.2% in the same period.

"Exports to Africa, including all constituent regions of the continent, have risen steadily. Major export markets in the sub-Saharan region are South Africa, Kenya, Nigeria, Tanzania, Mozambique, Ghana and Mauritius.

"In North Africa, Egypt, Algeria and Sudan are the most important destinations for exports. All of them have seen strong expansion," it added.

Further, it said that while there has been some improvement in exports to Taiwan, shipments to Japan and South Korea have fallen.

"We have FTA arrangements with Japan and South Korea and it seems that there is considerable potential which remains to be developed. This must be seen as a near term challenge from the facilitation side by Government, and as a business proposition for industry," it said.

India's exports to ASEAN countries fell by nearly 12% in 2012-13, "which is a matter of concern".

"This was a rapidly growing market in the previous two years and is a region where we have entered into FTA and have a range of common interests and logistic advantages," the report said.