The continued contraction in the decline of exports and the continued rise in industrial growth are indications of revival of the economy and the fact that the stimulus package and relief measures were bearing fruit. The dip in exports in October stood at 11.4 per cent against 13.8 per cent in September.
Union Commerce and Industry Minister Anand Sharma said that although the decline in exports had continued for the 13th consecutive month, the fact was that things had started looking up with a large number of sectors registering growth in demand. “The new policy of looking at new markets and diversifying the export basket has started bearing fruit as growth has been recorded in markets like Australia and New Zealand that were not traditional Indian export markets. We will continue to look towards pacific, Africa, Latin America and the Far East to expand our reach,” Mr. Sharma said.
For record, overseas shipments stood at $12.5 billion in October against $14.1 billion in the same month last year. The decline in exports in the first seven months of the current fiscal (April-October 2009-10) worked out to be 26.5 per cent. If the current trend continued, exports were expected to be flat by early 2010 and got into the growth radius by the end of this fiscal, Mr. Sharma said. During April-October this fiscal, exports recorded a level of $90.4 billion against $123 billion. Shipments of engineering good fell by 25.1 per cent to $2.33 billion in October, while gems and jewellery dipped by a meagre 1.1 per cent to $2.29 billion compared with the same period last year. Petroleum products and leather exports contracted by 12.1 per cent and 34.7 per cent, respectively, in the said month, to $1.86 billion and $165 million, over the corresponding period last year. In October, positive growth has been registered for drugs and fine chemicals, rice, spices, tobacco and jute.
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