India’s exports grew by an impressive 50 per cent in February, crossing the $ 200-billion mark during the first eleven months of 2010-11 on the back of rising demand from the US and other markets.
Exports went up by 49.7 per cent year-on-year in February to $ 23.5 billion, taking the April-February 2010-11 figure to $208.2 billion, an increase of 31.4 per cent over the year-ago period and past the yearly target of $ 200 billion.
Imports also increased by 21.2 per cent in the month under review to $ 31.7 billion, leaving a trade deficit of $ 8.1 billion, according to Commerce Ministry data.
During April-February 2010-11, imports grew by 18 per cent to $ 305.3 billion over the same period of 2009-10. The trade gap for the period stood at $ 97 billion.
"The growth we are seeing is basically from the markets of Asia, Latin America and Africa. In these new markets, demand for our products is increasing," said Mr Ramu Deora, President of Fieo. He, however, added that demand was still weak in several European markets.
The US and Europe were the traditional markets for Indian exporters, but after the global economic crisis, exporters increased their engagement in new markets of Asia, Latin America and Africa. Support is also forthcoming from the government, which is providing duty incentives to exporters tapping these new markets.
The exporting sectors which performed well during the 11 months of the fiscal 2010-11 include engineering goods (81 per cent), petroleum, oil and lubricants (34 per cent), cotton yarn and made-ups (43 per cent), chemicals (22 per cent) and electronics (40 per cent).
The Commerce Secretary, Dr Rahul Khullar, said that going by this trend, the country’s exports should touch $ 230-235 billion for the entire fiscal. Imports may end up at $ 350 billion and balance of trade at $ 105-115 billion for 2010-11, he added.
Oil imports in February dipped by 0.3 per cent to $ 8.21 billion from $ 8.24 billion in February 2010. However, non-oil imports grew by 31 per cent to $ 23.48 billion from $ 17.9 billion.
During April-February 2010-11, oil imports grew by 12.4 per cent to $ 88.17 billion from $ 78.41 billion in the corresponding period of 2009-10, the data said.
Non-oil imports during the period also went up, by 20.4 per cent to $ 217.12 billion from $ 180.33 billion in the same period of 2009-10.
Source : Exim News Service - NEW DELHI, April 4