Exports jumped by 36.2 per cent to $16.88 billion in April, showing clear signs that the export sector was making a strong comeback. After continuous decline for 13 months since October 2008, exports turned positive in November 2009; and since then shipments have followed the growth path. Exports had shrunk nearly 30 per cent to $12.4 billion in April last year under the impact of the worst global recession in 60 years.
Imports too rise
However, imports too increased by 43.3 per cent to $27.3 billion during the month from $19.05 billion a year ago. Oil imports increased to $8.08 billion from $4.74 billion in April last year. The trade deficit was at $10.4 billion in April against $6.7 billion in the year-ago period. At $176.5 billion, exports contributed about 17 per cent of the country's gross domestic product.
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According to Federation of Indian Export Organisations (FIEO) President A. Sakthivel, “The first month figure of the current fiscal is a clear indication that we would be able to meet the export target of $200 billion set for 2010-11.” He, however, said the government needed to regularly review its strategy in view of the setback in the Eurozone recently and hoped that the crisis would not spread further.