Exports registered an impressive 32 per cent growth during the first quarter of 2010-11, reaching $50.8 billion. Imports also grew 34 per cent at $83 billion during the same period, while the country's trade deficit stood at $32.2 billion.
Similarly, in June, exports registered an impressive 30.4 per cent growth to touch $17.75 billion, while imports also increased by 23 per cent to $28.3 billion. The trade deficit for the month stood at $10.55 billion. In June 2009, exports had shrunk by 27.7 per cent to $12.81 billion under the impact of global slowdown.
The sectors which registered healthy growth in June include engineering (90 per cent), petroleum and oil products (66 per cent), gems and jewellery (24 per cent) and chemicals (41 per cent). However, exports of readymade garments contracted by 14 per cent during the month.
“It is good news but still not great news…exports have still not reached the level of the pre-global economic crisis period. There is a problem in Europe...mood is not good out there in Europe,” Commerce Secretary Rahul Khullar told journalists here.
According to Federation of Indian Export Organisations (FIEO) President A. Sakthivel, “the continuous growth in exports by about 30 per cent for the last eight months shows the resilience of the exporters and innovative policy approach of the government. The focus given by the Ministry of Commerce for diversification of products as well as market has started yielding results, but we have to go a long way before expending our exports to all over the world.”
Exporters were concerned over the cost of export credit and eagerly awaiting for the announcement of export credit rate in the new base rate regime. The government should ensure that exporters get credit at the base rate itself, he said, and asserted that the India would be able to realise $200 billion export target during the current financial year.