Exports bounce back in Mar, up 50%

MIXED BAG

Shipments Rebound & Food Prices Ease Rupee & Gold Lose Sheen

New Delhi: India's merchandise shipments jumped by over 50% in March to $19.9 billion on the back of a low base. However, the value of exports for the entire 2009-10 fiscal declined 4.7% to $176.5 billion as demand from traditional markets in the West had dried up during the global economic slowdown. 

    Exports between April 2009 and March 2010 were valued at $176.5 billion, while imports stood at $278.7 billion during this period, marking an 8.2% decline from the previous fiscal's $303.7 billion. As a result, the trade deficit too shrunk to $102 billion from $118 billion in the year-ago period. 
    Exports for March, however, grew over 50% to $19.9 billion compared to the same month last fiscal. Exports have grown steadily for the last five months. 
    "The fall has been mainly due to the global meltdown but still we have been able to perform well,'' commerce minister Anand Sharma said on Thursday. The government has set an export target of $200 billion for the 2010-11 fiscal, the minister said, adding that India wants to double exports by 2014 from the current levels. 
    Sharma also said the rupee's steady gain against the dollar has not adversely affected Indian exports. The rupee has appreciated by 4.4% so far in 2010. 
    Commerce secretary Rahul Khullar said, "The bad news is that exports did not come up to the target of last year. But the good news is that we are not far (from 2008-09 export performance).'' Exports in 2008-09 stood at $185.3 billion. 
    Both Sharma and Khullar, however, felt the exports sector was still not out of the woods. The looming Eurozone economic crisis and the continued poor performance of several sectors could have an adverse impact in the coming months. "We will be tweaking the policy of some of the incentives, where required, giving more support to sectors which are still hurting and in deep red,'' Sharma said. 
    Sectors like engineering, readymade garments, leather, carpets, oilmeals, petroleum products and gems and jewellery, which together account for 70% of India's exports, either showed no growth.