NEW DELHI, June 21: India is targeting a proposed duty cut in Pakistan and improving conditions in war-ravaged Iraq to boost its exports, officials said on Monday.

Indian exports dipped 18 per cent to 164.8 million kg in 2003 over 2002, largely due to the decimation of its vital Iraq market following the US-led war and its immediate chaotic aftermath.

With the interim Iraqi government taking nascent shape, despite insurgent violence, Indian tea officials say Iraq's market for tea is slowly picking up again. Indian exporters are also looking to Pakistan as a cautious year-long peace process between the two nuclear rivals is sustained by New Delhi and Islamabad.

India's exports grew 20 per cent to 45.68 million kg in January-April from the corresponding period of the previous year. Export figures for the Iraqi market were not available.

Pakistan, the world's third largest buyer, announced earlier this month it planned to halve its import duty to 10 per cent as part of its budget proposals which take effect in July.

India exported slightly over two million kg to Pakistan in January-April, the low-season for production. Exporters say the figure could touch 15 million kg in 2004 as better quality leaves are plucked later in the year.

Propelled by the peace process and restoration of transport links between the two countries, tea exports to Pakistan jumped 73 per cent to 6.4 million kg in 2003 from 2002. But Indian exports lag far behind Kenya, which caters to more than half of Pakistan's 110-120 million kg annual demand.

ITA team visited Pakistan in May and signed a memorandum of understanding with the Pakistan Tea Association for 25 million kg of Indian tea exports from 2004-05 (April-March) to 2006-07. Indian tea output in January-April 2004 fell more than 19 per cent to 127.24 million kg year-on-year, largely on account of excessive pre-monsoon rains. -Reuters