Merchandise exports rose 30.4 per cent year-on-year to $17.75 billion in June, while imports grew by 23 per cent to $28.3 billion, resulting in a trade deficit of $10.55 billion.
In the quarter ended June, exports jumped by 32.25 per cent, reaching $51 billion, compared to $35.4 billion in the corresponding period of last year. Imports rose by 34 per cent to $83 billion, as against $50.9 billion in the same period of 2009-10. The trade deficit in the first quarter of this year widened to $32.2 billion due to a significant rise in domestic demand from $28.64 billion in April-June 2009-10.
“There is a visible improvement in the figures. The trade deficit level is what we had expected,” said Commerce Secretary Rahul Khullar, while releasing the estimates. He said the growth in exports came mainly from newer markets and not from the traditional destinations of the US, Europe and Japan, which take 40 per cent of the country’s exports.
He said the commerce department, along with the Directorate General of Foreign Trade, had completed a sector-wise review to examine the extension of incentives given under the Foreign Trade Policy (FTP) last year. The ministry is yet to form a decision on this. The FTP has set a target of achieving $200 billion worth of exports in 2010-2011.
Export of engineering goods, petroleum products, iron ore, gems, precious and semi-precious stones, chemical products rose significantly. Those of readymade garments, textiles and man-made fibres fell.
A Sakthivel, president of the Federation of Indian Export Organisations, urged the continuation of stimulus measures to sustain the growth rate.
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The country’s merchandise exports for all of 2009-10 was less by 4.7 per cent at $176.5 billion, compared to $185.3 billion in 2008-09, due to sluggish demand for Indian goods abroad.
Exports from SEZs
Exports from special economic zones (SEZs) reached Rs 58,756.68 crore in the first quarter of 2010-2011, up 67 per cent over the period in 2009-10, when exports from SEZs had topped Rs 35,013 crore. The figures had gone up from Rs 22,000 crore in 2005-06 to Rs 2,20,000 crore in 2009-10, the Export Promotion Council for EOUs and SEZs said on Monday.